The Latest: German finance chief says VAT cut 'moral' duty

BERLIN — Germany’s finance minister says businesses have a “moral obligation” to pass a temporary cut in value-added tax on to customers.

The cut, a centerpiece of a 130 billion-euro ($146 billion) stimulus package aimed at helping pull the economy out of the coronavirus crisis, takes effect for six months starting Wednesday.

The main value-added tax rate was cut to 16% from 19%, and the reduced rate applied to groceries and some other everyday items to 5% from 7%.

Officials are keen to ensure that businesses actually cut prices to encourage buying.

Finance Minister Olaf Scholz told the daily Bild that “if everyone waits to see what others are doing, the economy won’t pick up -- and then we could have a long bad economic stretch.”

Scholz, who is also vice chancellor, added that that's why everyone should play along.

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HERE’S WHAT YOU NEED TO KNOW ABOUT THE VIRUS OUTBREAK:

— Hollowed out public health system faces more cuts amid virus

— Dems: Nursing home virus effort ‘chronicle of deadly delay’

— Fauci, CDC chief raise concerns about full airline flights

— Beirut’s airport is partially reopening after a three-month shutdown and Lebanon’s cash-strapped government is hoping that thousands of Lebanese expatriates will return for the summer, injecting dollars into the country’s sinking economy.

— The European Union has announced it will reopen its borders to travelers from 14 countries and possibly China soon. Most Americans, however, have been refused entry for at least another two weeks due to soaring coronavirus infections in the U.S.

— In Republican circles -- with the notable exception of the man who leads the party -- the debate about masks is over: It’s time to put one on.

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