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Expert demands waiving VAT on cars

Auto Expert: Ferdinand Dudenhöffer conducts research at the ICI Institute for Customer Insight at the University of St. Gallen.

Nicolas Blandin / dpa-tmn

In order to get private demand going, VAT on cars should be dropped. This is what the St. Gallen expert Ferdinand Dudenhöffer demands.

Auto industry expert Ferdinand Dudenhöffer has proposed to waive VAT on high-quality consumer goods such as cars. Such a measure could get private demand going again in the Corona crisis, said the scientist at the University of St.Gallen on Sunday.

Demand impulses are important so that the manufacturers and their suppliers do not cut their capacities and thus jobs in the current lull.



Dudenhöffer was skeptical whether short-time working and liquidity aids alone could bring the automotive industry through the crisis. State funding could only be a short bridge.

He asked the car manufacturers more and more affordable offers for car subscriptions, including all costs. Customers also had to be granted special termination rights, for example if they lost their jobs.

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