High Fuel Prices: What a VAT Reduction Could Achieve
TL;DR
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Reducing VAT on fuel from 19% to 7% could theoretically lower the price per liter by 23.2 cents. Businesses would benefit little as they can reclaim VAT. The measure would cost the state 7.7 billion euros annually in lost tax revenue and requires parliamentary approval.
Source: tagesschau.de
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