Deutsche Post XETR:DHL on Thursday defended its value-added tax exemption for business mail, pushing back against reported plans by the finance ministry to scrap the tax break in order to raise additional revenue.
* "The tax exemption is mandatorily prescribed under European law and linked to the provision of the universal postal service," the Bonn-based company said in a statement
* The company was responding to a report by the Spiegel news outlet that Finance Minister Lars Klingbeil plans to scrap the group's tax advantage when it collects and delivers business mail
* A draft document from the economy ministry dated June 26 said such a measure could generate around €115 million ($135 million) in additional annual tax revenue
* The tax treatment of Deutsche Post has been controversial for years, with Germany's Monopolies Commission among those having called for an end to the VAT exemption for business mail
* Deutsche Post has repeatedly rejected such proposals, arguing that it is the only postal and parcel service provider in Germany that carries out the costly universal service obligation