Expert recommends eliminating VAT on cars

The auto industry is also suffering from the corona virus and it is likely to last a very long time. One expert is skeptical of whether the previous help is enough – and has a suggestion.

Automotive industry expert Ferdinand Dudenhöffer has proposed to remove VAT on high-quality consumer goods such as cars. Such a move could revive private demand in the Corona crisis, the scientist said.

Currently, the VAT on the purchase of a new car is 19 percent. Demand impulses are important so that manufacturers and their suppliers do not reduce their capacities and therefore jobs in the current doldrums.

Expert is skeptical of whether previous help is enough

Dudenhöffer was skeptical that the German auto industry could weather the crisis with the sole instruments of short-time working and liquidity support. Government funding can only be a short bridge.

It is asking automakers for increasingly affordable offers for auto subscriptions, all-inclusive. Customers were also to be granted special termination rights, for example if they lost their jobs.

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