For years, the German postal service enjoyed a special privilege regarding value-added tax, allowing it to provide some of its services tax-free. However, with the new changes, this privilege has been removed, and competition in this industry has returned to a normal and equal state.
Impacts and Consequences
This change means the creation of a new competitive field for all companies, and it seems that Lars Klingbeil, the SPD minister, will take advantage of this situation. With the removal of this privilege, no company can maintain its market superiority under the pretext of not paying taxes.
Now it remains to be seen whether this decision will also benefit consumers or if it will bring negative consequences. Will prices rise, or can the new competition lead to improved services? Time will answer these questions.
