Ifo chief advocates for a unified value-added tax rate

The president of the Ifo Institute, Fuest, has called for the introduction of a unified value-added tax rate. He proposes to abolish the reduced rate of seven percent, which could lead to higher prices for many goods.

To mitigate the effects on socially weaker population groups, Fuest has also developed ideas to ensure the social compatibility of such a measure. Details of these proposals have not yet been disclosed.