Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/262906 
Title (translated): 
Reduce VAT on food to zero
Authors: 
Year of Publication: 
2022
Citation: 
[Journal:] Wirtschaftsdienst [ISSN:] 1613-978X [Volume:] 102 [Issue:] 6 [Publisher:] Springer [Place:] Heidelberg [Year:] 2022 [Pages:] 492-494
Publisher: 
Springer, Heidelberg
Abstract (Translated): 
The economic consequences of the war in Ukraine are taking a toll on goods prices in Germany and elsewhere. Prices on energy inputs to production, heating and mobility have risen sharply as well as food prices. As a possible policy response to these rising prices, the reduction of the VAT to zero on basic food is being discussed. In the debate many counter-arguments like the pass-through rate, the distributional effects and the financing have come up. In this paper, I argue that these points of critique hardly stand up to closer scrutiny. Both theoretical and practical arguments suggest that reducing the VAT to zero is an appropriate measure to mitigate inflation and provide relief.
Subjects: 
Umsatzsteuer
Steuersenkung
Lebensmittel
JEL: 
H20
H23
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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