Shutterstock

News Germany

Germany is considering higher VAT on meat

13 August 2019 - Kimberly Bakker

Several politicians in Germany are in favor of a higher VAT on meat products. The VAT increase should generate income for investments in animal welfare and should also ensure that the high meat consumption will decrease. However, not everyone is in favor of this plan.

At the moment, the VAT on meat is 7%, but various politicians (including the SPD, Grünen and the CDU) are advocating that the VAT rate be increased to 19%. On the one hand, this should provide extra income that can be used for investments in animal welfare and, on the other hand, to reduce meat consumption.

Thomas Schröder, the chairman of the German animal protection organization, reports that there are many small farmers in particular who want to expand the living space of their animals, but at the same time indicate that this is not financially possible for them at the moment. "A so-called meat tax is the perfect solution," he reports to the German newspaper Neue Osnabrücker Zeitung.

Negative for farmers
However, not everyone is in favor of the introduced plan. The opponents mainly come from the liberal FPD and right-wing populist AfD. They fear that German farmers will lose money, because the buyer will opt for cheaper meat (which will probably not come from Germany). That argument has also made some proponents doubt the plan's feasibility.

According to others, the measure misses the mark; a higher price would particularly affect organic meat. In addition, the Ministry of Finance in Germany reports that income from a tax cannot be recorded for a particular purpose; in this case improving animal welfare. The Ministry of the Environment is therefore proposing other measures, such as stricter manure legislation to encourage a decline in livestock.

Do you have a tip, suggestion or comment regarding this article? Let us know

Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.

More about

Germanybtw

Call our customer service +0320(269)528

or mail to support@boerenbusiness.nl

do you want to follow us?

Receive our free Newsletter

Current market information in your inbox every day

Register