Germany's lower house of parliament, the Bundestag, has voted in favour of the government's plan to increase the VAT sales tax from the current 16 percent to 19 percent. The measure takes effect at the start of next year. Chancellor Merkel's grand coalition government hopes to use the additional revenue to reduce the deficit and lower non-wage labour costs for employers. Opponents of the plan say it breaks a key campaign promise by the staging the “biggest tax hike” in German history. Business leaders and economists say it would hurt Germany's economy.
The 3 percent sales tax increase didn't come as a surprise to anyone, since it was technically part of Merkel's campaign platform.
The tax increase leaves Germany just below the EU's average standard VAT rate of 19.34 percent, about halfway between Cyprus and Luxembourg's 15 percent and Denmark and Sweden's 25 percent. I guess I can’t really complain to my EU buddies…still, it is a far cry from Ellis County 8.75% (or whatever it is these days). Texans, now don’t complain!
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4 comments:
I dont know much about taxes, but I know about shopping! ha! Are things cheaper over there because the sales tax is higher than here? Why is it so much higher than Texas?
that anonymous was from Tammy-did you already know that?
Tammy - no things are not cheaper in Germany, generally speaking. Ths cost of living is higher than what we have in TX. Taxes are also higher b/c the governamyn funds alot more things than in the US: university education for all, national health care,....just to name a few.
That is interesting. The differences in governing. Thanks for the lesson! th
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