Olaf Solz: Pre-election pledge to reduce VAT on groceries

The German chancellor Olaf Solz proposed to reduce the value added tax (VAT) on grocery staples to help low-income households cope with persistently high inflation.

Solz, who is running for a second term as chancellor in elections expected in February, said in an interview on Tuesday night that he was in favor of reducing the VAT on daily food products from 7% to 5%.

“This would help many people who earn very little money and would not be too much of a burden on the federal budget,” Solz told public broadcaster ARD.

The German Social Democrat leader also expressed confidence that he will win the snap election on February 23, despite the huge lead of the opposition conservatives in opinion polls.