The ministry’s plans do not include such a measure, according to informed circles in Berlin. A VAT increase has so far only been brought into play by the Union in various discussions.

The “Handelsblatt” had previously reported that the federal government was internally planning to increase VAT by two percentage points from 19 to 21 percent. This is calculated in the Ministry of Finance as part of an overall package that, in return, should reduce income tax or social contributions.

The regular VAT rate is currently 19 percent. According to “Handelsblatt” calculations, an increase would be one percentage point the state bring additional revenue of more than 15 billion euros. At two percentage points it would be around 31 billion euros.