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Economic stimulus package: will the tax cut really come through?

2020-06-06T10:02:46.428Z


There were many positive reactions to the Federal Government's 130 billion stimulus package. But not only. The temporary reduction in VAT from 19 to 6 and 7 to 5 percent is very controversial.


There were many positive reactions to the Federal Government's 130 billion stimulus package. But not only. The temporary reduction in VAT from 19 to 6 and 7 to 5 percent is very controversial.

Bad Tölz-Wolfratshausen - Below are some voices of trade and craft in the district of Bad Tölz-Wolfratshausen.
Elfriede März, mineral oil trade in Tölz and Eurasburg, among others: “It all happens very quickly. Who pays that when programmers have to change the software? Because of six months. So, I don't think so much of it. If a family spends 500 euros a month on food, they save no more than 10 euros on 7 percent VAT. I don't think that is why private individuals buy more. Certainly not a car. They are currently holding the money back and are waiting for the second wave of corona. In the end, the supermarkets even use it for the hidden price increase. They will not lower the threshold prices like around 0.99 euros, but in six months they will add the two or three percent back and in the end raise them to 1.09 euros. A wage and income tax reduction would have been much fairer for everyone and shorter amortization periods for companies. ”

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Kaspar März, Edekamarkt in Tölz and Ascholding, among others: “I am firmly convinced that prices will drop and will be passed on to the customer. The prices are imported centrally by Edeka with us. I don't believe in a hidden price increase. The competition is too tough. Discounters like Aldi are more likely to take the opportunity to lower prices again. The full-range retailers must then follow suit. The reduction in VAT came like a bang to me. That has never happened before. The customer will feel it. But the limitation to half a year really doesn't make sense. "

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Peter von der Wippel, Sport Peter / “Mammut” in Tölz: “Overall, I think the stimulus package is well designed. The family allowance, for example, already arrives at the right places. Ultimately, it is about maintaining social peace and avoiding unrest. What I think is completely wrong communication is the reduction in VAT. It is not used to lower sales prices. The effort of the conversion alone would not pay off. There would also be strange prices. No, the tax reduction is rather intended to ensure that more liquidity remains in the company. And that is also necessary. I assume that the big bankruptcy wave will come for many companies in the fall, when the deferrals expire. For many, the finances are sewn on edge. Will there be tax increases after the election to finance the stimulus package? I do not think so. Then you would tear out the delicate little upswing again. "

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Andreas Heinrich, pharmacies in Tölz and Lenggries: “Three percent tax reduction: this only produces a lot of work and additional costs for us small retailers. I am not the metro and I do not have electronic pricing. We pop every label from every pack and stick on a new one. A decision by the Bundestag is also missing. So this is going to be a fairly short story. In principle, I also see the tax cut more as a liquidity aid for companies. However, we will adhere to the recommendations of our registry as far as prices are concerned. Germany should be pretty alone with the fact that 19 percent is levied on medicinal products and respiratory masks. ”

Josef Oswald, Arzbach, chief master carpenter guild Miesbach / Bad Tölz-Wolfratshausen: “Now we have to wait and see what is really decided in the Bundestag and how it is then implemented in detail. But if VAT was really reduced from 19 to 16 percent on every invoice, it would be great for the craft and a real treat for our customers. So far, the person who has done the least for our work has earned the most from our work (the tax authorities, editor's note). Therefore, the tax cut should be maintained permanently. That would be great. Incidentally, the three percentage point tax cut comes just in time. Craftsmen already feel the corona consequences. People save a lot more. "

By Christoph Schnitzer

Source: merkur

All news articles on 2020-06-06

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