German VAT ‘not on the rise’
Monday June 29, 2009
German chancellor Angela Merkel has countered claims that the rate of VAT charged in the country is set to be increased.
Last week, speculation emerged that ministers were reportedly looking to increase the tax from seven to 19 per cent in a move designed to cut the government’s rising budget deficit.
However, the chancellor hit back at the claims in an interview with Bild am Sonntag and suggested that such talk could impact on economic activity in the country.
"With me, there will be no increase in the next legislative period, neither of the full- nor of the reduced-rate of value added tax," she added.
One country which will soon see a VAT increase is Estonia, and the country’s prime minster Andrus Ansip has claimed the move will not have a negative impact on the area.
He told E24.ee that it was wrong to suggest the move could harm the economy, reported Baltic Business News.