Deutsche Post should pay VAT on letters, Hesse politician says

Deutsche Post World Net AG should pay value-added tax on letters it delivers, just like its privately owned rivals, the state of Hesse’s economy minister Alois Rhiel said.

Rhiel said he will formalise the demand at a meeting of Germany’s state economy ministers in Berlin on Wednesday and Thursday.

He told DPA that fair competition will create jobs and reduce postal fees.

Deutsche Post’s monopoly and its privileged tax position mean that private companies have little chance to compete. Even in areas where competition is theoretically possible, Deutsche Post still controls 88 pct of the market, Rhiel maintained.

Rhiel estimates that the domestic mail market is worth about 23 bln eur. The market for regular, express mail and parcel delivery is worth about 13 bln eur.

‘By taxing everyone equally we expect to receive better service and lower prices while creating more jobs,’ Rhiel said.