What does everyone think of the increase of 3% VAT?

Question

The January 1st increase from 16% to 19% hurts the pocket.

Answer 1

hey there,

because a lot of people do not know, what that really means, they only see the tax raise, but groceries and many other goods are not even hit by this raise, groceries e.g. are taxed at 7% same as books, newspapers...

I think it is only playing with a situation that is tensed already, shops and sales persons are manipulating the people, before the raise it was "buy before the raise" now it is "we did not raise our prices"

most of the prices (no matter what tax rate they are in) have been raised already in summer during the soccer cup, that was when most of the people have been in such a good mood that they did not even notice ;)

most of us won't die now, however I understand if people have a lack of money already and do not know how to pay their living, that every cent counts now more then "last year"

greets from Germany

Anne

Answer 2

Increasing the VAT hits most those people most, who have to spend most of their income for basic needs. It doesn't affect the reduced VAT, for food, newspaper and baby articles, but the rest of your expenses, like fuel, car, repairs, shoes, clothes and so on.

The more income you have, the more you have the choice if you want to spend it for those items, or if you prefer to save / invest it instead.

In my opinion raising the VAT was a weak and unfair decision, hitting the lower income population most, because for them it is effectively a tax rise by nearly 3%.

Answer 3

What do you expect???

Everybody loves it, of course!

Answer 4

I'm not sure yet.  So far I have not noticed much change.  The restaurants I eat at Donner place, Chinese place, McDonald's, Sushi place, etc.. all seem to have the same price.   The rent, parking Garage, and utilities all have increased, but the increase seems minimal (3% of 1,500 is only $45; granted over 12 months that is $540).  I think I will start feeling the pain in 6 months when smaller good items and restaurants start raising their prices.