CDU Backs Scrapping VAT on Essential Foods Amid Iran War Price Surge

Newsworm
Newsworm
with
AFP
April 6, 2026
CDU lawmakers are backing proposals to scrap VAT on essential foods following dramatic price increases tied to the Iran war. Sebastian Steineke says the measure would help consumers with limited budgets, while Dennis Radtke criticizes government hesitation. Cross-party support is building as oil supply disruptions through the Strait of Hormuz fuel sustained inflation.
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CDU Backs Scrapping VAT on Essential Foods Amid Iran War Price Surge
Against the backdrop of price increases following the Iran war, CDU consumer policy experts have expressed openness to abolishing value-added tax on basic foodstuffs. - AFP

Against the backdrop of price increases resulting from the Iran war, CDU politicians have expressed openness to eliminating value-added tax on basic foods. "The reduction or even abolition of value-added tax on basic foods, as also brought up by (Union parliamentary group leader) Jens Spahn, is fundamentally worth considering," Sebastian Steineke (CDU), the Union parliamentary group's consumer protection spokesman, told Handelsblatt newspaper on Sunday.

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Consumers are currently suffering particularly from high prices, and there is no end to the burden in sight.

Targeted Relief for Low-Income Households

Therefore, relief on basic foods makes sense, "since everyone depends on them and the measures would arrive exactly where they are most urgently needed, with consumers with limited budgets," Steineke continued.

Dennis Radtke, head of the CDU's labor wing (CDA), also spoke out in favor of eliminating value-added tax on healthy foods. "I consider a value-added tax reduction on basic foods to be a conceivable form of relief," Radtke told Handelsblatt. "What's important is that we arrive at measures that also help immediately."

Criticism of Government's Hesitant Response

He criticized the federal government for what he sees as overly hesitant action. "The government must now get out of discussion group mode and take action," Radtke declared.

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Previously, the SPD's business wing Seeheimer Kreis had called for eliminating value-added tax on healthy foods. German politics cannot control the international oil price, said Seeheimer chairman and deputy parliamentary group leader Esra Limbacher to Bild newspaper on Saturday. "But we can ensure that the price increases for energy and food don't land unmitigated in Germans' wallets."

Corresponding demands also came from the opposition. "From my perspective, it would make sense to reduce the value-added tax on basic foods to zero. Because that is something citizens would feel very concretely in their wallets," former Green Party leader Ricarda Lang told Neue Osnabrücker Zeitung on Sunday. Additionally, Lang advocated for reintroducing the nine-euro ticket as well as a right to work from home.

Iran War Disrupts Global Oil Supply

Normally, approximately one-fifth of the world's crude oil and liquefied natural gas is transported through the Strait of Hormuz. However, since the start of the Iran war in late February, shipping traffic through the strait has largely come to a standstill. The blockade by the Iranian Revolutionary Guards has led, among other things, to a dramatic increase in crude oil prices.

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