http://www.thepeninsulaqatar.com/Dis...0605203419.xml
BERLIN • Germany's lower house of parliament approved a controversial new budget law yesterday that paves the way for the country's biggest tax increase since World War Two.
Quote:
The centrepiece of the law is a 3 percentage point increase in value-added tax (VAT) to 19 per cent, which Chancellor Angela Merkel's government wants to finance a reduction of the budget deficit and a lowering of payroll costs.
Economists have warned that the VAT hike, which is due to go into effect next year and cost taxpayers up to 18bn euros ($22.95bn) annually, could hit the German economy just as it is showing signs of emerging from years of sub-par growth.
|
Madness.
20-05-2006, 04:40 AM
German House backs biggest post-war tax rise
Linear Mode
