Inflation & energy prices: Markus Söder calls for energy tax reform

Berlin In view of the steep rise in energy prices, Bavaria’s Prime Minister Markus Söder (CSU) has called for billions in relief for consumers and the economy. “We need a major energy tax reform,” Söder told the Handelsblatt. “The massive inflation and the skyrocketing energy prices require countermeasures.”

The CSU boss proposed a relief package with several elements: The EEG surcharge should be completely abolished this year, while the electricity tax should be reduced significantly to the European minimum.

In the case of natural gas, geothermal energy and district heating, “the value added tax should at least temporarily be reduced to the reduced rate of seven percent,” said Söder. He also wants to increase the commuter allowance.

The Federal Government must prevent rising energy prices and general inflation from “becoming a poverty trap,” said the Bavarian Prime Minister. He also fears a “real locational disadvantage” for the German economy.