Ifo president calls for a uniform VAT rate of 19 percent

Clemens Fuest, president of the Ifo Institute, has advocated for the introduction of a uniform VAT rate of 19 percent for all products. This measure could lead to higher prices for many goods, as a reduced tax rate currently applies to certain foods and flowers.

Fuest argues that the state could generate around 36 billion euros in additional revenue annually through this reform. To mitigate the impact on poorer households, he plans to provide cash credits to these groups.