Federal government wants to reduce VAT on gas

Berlin In view of the rapid rise in gas prices, the federal government wants to relieve consumers of VAT. In the future, the tax on gas will be seven percent instead of the current 19 percent, said Chancellor Olaf Scholz on Thursday in Berlin. The same should apply to the gas allocation. “The question of justice is crucial for the country to stick together in this crisis,” said Scholz and also announced a new relief package for the coming weeks.

The SPD politician made it clear that he expects companies to pass on the tax cut one-to-one to consumers. “This is another step towards relief.”

The tax cut is to apply until March 2024 and thus as long as the gas surcharge of 2.4 cents per kilowatt hour is levied. Scholz explained that the relief would be significantly higher than the burden of surcharges.

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