Tax cut on gas: triple error at a price of billions

Chancellor Olaf Scholz

It is a noble intention of the federal government not to want to enrich itself from the suffering gas consumers – but the conclusion from this makes little sense.

(Photo: Reuters)

How much money would you have to be given to make three mistakes at once? In any case, the federal government does not even ask for money, it also spends billions on it. For more than a year and a half, the government wants to reduce VAT on gas from 19 to 7 percent. Her against it huge income. That much money could have been spent much more sensibly.

Berlin is distorting the price signals with the tax cut. That’s the first mistake. High gas prices are not bad per se because they make citizens and companies look for alternatives. If the state intervenes, the gas will no longer be distributed in the most efficient way and used where it is needed most. This also complicates the self-imposed goals for saving gas.

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