Ifo-institut: reducing the vat has missed goal

Ifo-Institut: Reducing the VAT has missed goal

The temporary reduction in vat has barely brought a bit brought after consulting the ifo institute for the economy. Explained goal of the federal government was the burger "this to move to large acquisitions. This has not been achieved how two surveys suggest", wrote the economic researchers clemens fuest, andreas peichl and florian neumeier in a spectrum released on monday.

Hardly increased private consumption

The reduction of vat from july to december 2020 brought 6.3 billion euros to additional consumption. This corresponds to an increase in private consumer expenditure by only 0.6 percent against the previous year. The treasured tax loss amounts to 20 billion euros. "The decision not to be demanding vat reduction out of december 2020 can only be buried before this background despite the still insecure situation of the economy", stressed the economic researchers in their study.

The ifo institute had the forsa society for social research in october and november 30.000 representative bundesburger question. Most respondents said that, despite lower value added tax, they had waived consumption because the purchase was surprised and they expected higher expenses in the future. Only two percent of respondents said they had a great acquisition from july to october, to which they had renounced without vat reduction. Of those who planned at the end of the end of greater acquisitions, it gave 12 percent in october and 29 percent in november that they were waived without vat reduction.

Who rarely purchased, invested mainly in coarse household conservation, television, computer, construction and renovation work, coated and cars. Reducing the vat from 19 to 16 percent saved when buying a car with a net price of 25.000 euro with complete disclosure of the tax cut to the buyer 750 euros, a tv with 1000 euro net price was 30 euros cheaper. The most among the majority of the buyers said they "acquisitions also without the reduction of vat" had.

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