VAT reduction will increase the buying mood - but exactly the opposite happens

Only the Federal Finance Minister, Olaf Scholz, to combat the economic consequences of the devastating Corona-crisis "Bazooka took out" and calmed the markets

VAT reduction will increase the buying mood - but exactly the opposite happens

Only the Federal Finance Minister, Olaf Scholz, to combat the economic consequences of the devastating Corona-crisis "Bazooka took out" and calmed the markets. Now followed as a highlight of the pandemic-panic-Plan of the "oomph" of the Federal government, With a rich economic stimulus package in the amount of 130 billion euros, the state wants to get the "ship to Germany" back on track.

With a special meeting of the Federal Cabinet of the Grand coalition today, Friday (12 want. June) a legislative initiate procedures in a rush to VAT, as planned, on 1. To July lower.

AKK the time limit on the action

stresses Immediately in front of the Cabinet decision on VAT reduction, the CDU Chairman Annegret Kramp-Karrenbauer in front of an extension of the Corona utility warned of action beyond this year: "I would like to just increase the time limit on the incentive effect," she told the news magazine "Focus".

CSU leader Markus Söder and SPD Faction leader Rolf Mützenich had not ruled out an extension of the VAT reduction into next year, unlike Chancellor Angela Merkel (CDU) and Finance Minister Olaf Scholz (SPD).

effect of the VAT reduction controversial

an Estimated 14 billion euros in tax revenue lost to the Federal government, the planned VAT reduction. Actually, you should increase the buying mood of the consumer and thus the economy moving again. SP-X For the coming months, the car trade has to fight, among other things, the high inventories

traders fear, however, that it causes exactly the opposite. The Problem is that The VAT reduction engages, at the earliest, on 1. July. To save money, will push many consumers make their purchases even longer. Especially in the case of expensive purchases, the Savings is large. However, many traders need to make as soon as possible, the loss in sales in the last months of betting to cover the running costs.

read also: All the News in the Live-Ticker to the Corona-crisis

"June is probably good for many industries broken"

the car dealers, for example, the new cars stack up on the farms. Entice them with record discounts, the sell-off falters but still. "June is probably good for a lot of industries broken," said Michael Gerling, managing Director of the trade research Institute EHI Retail from Cologne about the industry in the "world". "Actually, the economy should be stimulated, however, until the end of June is likely to happen but exactly the opposite, especially in the case of durable consumer goods such as cars, furniture, kitchens, travel, or consumer electronics." dpa/Jan Woitas/ZB/Reuters The car industry as a result of the Corona-crisis under severe pressure.

Similar to Frank's mouth, President of the Association of the Automotive industry in North Rhine-sees Westphalia: "The June is likely to be a lost month." He expect to see sharply falling approval numbers. Especially since the decision against the hoped-for purchase of premium for cars with internal combustion engines meets the after sales soul-hungry industry heavy. This in turn increases the selling pressure in addition. New cars with a value of 15 billion euros will have to wait for the merchants to acceptance.

in Addition to kidding distributors and customers, the lack of clarity about the settlement. "We do not know whether the time of purchase is decisive for the question of whether 19 or 16 per cent, to be due and payable, or the delivery date or the approval," said the mouth of the newspaper. "But uncertainty and, therefore, the purchase prevails restraint."

trade researchers Gerling stated: "In the reduction of the VAT very many themes in it, which is not considered in the policy apparently don't get stuck."

More about VAT and other facilities

  • VAT is reduced from July: How you can benefit and save money

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  • kids bonus for families is decided - what parents now

The state need to know there families because of the Corona-crisis, now Extra-money: The so-called children's or family bonus includes 300 Euro per child. Today, the Cabinet must decide. FOCUS Online explains what you need to know the parents.

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Updated Date: 12 June 2020, 22:27

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