Merkel says no plans to raise taxes over refugee influx

German Chancellor Angela Merkel said Sunday her government had no plans to impose a tax hike to cope with a record influx of asylum seekers, firmly denying reports that Berlin and the European Commission were mulling a special refugee solidarity levy.

In an interview to be published by Bild newspaper on Monday, the German leader was asked to confirm that there would be no tax hikes over the refugee crisis.

“Yes, affirmative,” she replied, adding that Germany has “managed our budget well in the last few years and our economy is in a good shape”.

The Sueddeutsche Zeitung had claimed in a report Saturday that Berlin and Brussels had discussed the possibility of raising funds to cope with Europe's biggest refugee crisis through a special tax, which could take the form of higher levies on fuel or VAT.

But Berlin swiftly denied this, with government spokesman Steffen Seibert on Saturday saying: “We want neither a tax hike in Germany nor the introduction of an EU-tax.”

On Sunday, a European Commission spokesman also rejected the claim, saying: “There is no such proposal currently on the table or under preparation and the Commission never comments on rumours in the press.”