With the help of new EU guidelines
Social organizations are demanding cheaper food
4/21/2022, 8:13 am
In view of the high inflation rate, consumer prices continue to rise significantly. Social organizations are calling for a reduction in VAT on certain foods to zero. A healthy diet should not be a question of money, says DDG Managing Director Barbara Bitzer.
Social and consumer associations have called for the abolition of value added tax on certain foods in view of the significant price increases for food. The social association VdK, the Federal Association of Consumer Organizations (vzbv) and the German Diabetes Society called on the federal government to use a new EU regulation accordingly.
Due to the high inflation rate, more and more people are reaching their financial limits, said the president of the social association VdK, Verena Bentele. Low earners, pensioners and recipients of basic security no longer know how to pay for their groceries or electricity bills. “The VdK is therefore calling for a drastic reduction in VAT on staple foods, namely to zero percent. The federal government must make full use of this option, which is now available to all EU member states.”
New EU directive
Two weeks ago, a change to the so-called EU Value Added Tax System Directive came into force largely unnoticed. In the directive, the EU states have set common requirements for VAT: The regular tax rate must therefore be at least 15 percent, the reduced rate at least 5. Complete tax exemptions are only possible in certain areas, since the change now also for food.
The Federal Association of Consumers spoke out in favor of the abolition of VAT, especially for fruit, vegetables and legumes. This would cushion the effects of rising food prices, which is currently important for low-income households, said food officer Christiane Seidel. “At the same time, it would make it easier for many people to eat healthily and contribute to climate-friendly food production.” The federal government should now use this opportunity and relieve consumers quickly.
No VAT for fruit and vegetables
Similar demands come from the German Diabetes Society. “A healthy diet shouldn’t be a question of money,” said DDG Managing Director Barbara Bitzer. The federal government must use the new legal leeway and abolish VAT for vegetables and fruit. In return, she demanded that “the manufacturers of sugar-coated drinks” be asked to pay. “Sugar drinks are a major driver of obesity and diabetes.” Manufacturers need effective incentives to drastically reduce sugar content.
Life in Germany has skyrocketed in price since the beginning of the Ukraine war, and there is no sign of an easing in consumer prices for the time being. Energy and food are becoming more and more expensive. According to the Federal Statistical Office, food cost 6.2 percent more in March than a year earlier. Edible fats and oils in particular (plus 17.2 percent) and fresh vegetables (plus 14.8 percent) became more expensive.