German Leader Scholz Backs Lower Grocery Taxes as Election Nears

German Chancellor Olaf Scholz has proposed a reduction of the value-added tax on basic groceries to help low-income households cope with persistently high inflation.

Scholz, who’s running for a second term as chancellor in an election expected in February, said in an interview on Tuesday evening that he was in favor of reducing the VAT on everyday food products from 7% to 5%.

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“This would help many people who earn very little money and would not be an excessive burden on the federal budget,” Scholz told ARD public broadcaster.

The ...