Berlin, 19 August 2022 (TDI): German sales tax on gas will temporarily be reduced, according to Chancellor of Germany, Olaf Scholz.
This will be done in an effort to assist consumers suffering skyrocketing expenses due to a shortage of Russian energy supplies.
Wir werden die #Mehrwertsteuer auf #Gas von 19 % auf 7 % absenken, solange die #Gasumlage erhoben wird. Ich erwarte von den Unternehmen, diese Entlastung eins zu eins an die Bürgerinnen und Bürger weiterzugeben. Die Gerechtigkeitsfrage ist für unseren Zusammenhalt entscheidend!
— Bundeskanzler Olaf Scholz (@Bundeskanzler) August 18, 2022
According to Scholz, the decision to reduce the VAT (value-added tax) on gas from 19 percent to seven percent was made to counteract an energy surcharge that is likely to cost households hundreds of Euros as a result of the Ukraine War.
According to him, the lower sales tax will be in effect until March 31, 2024, as long as the gas surcharge is in effect.
He stated that “With this measure, we are offering gas customers relief that is significantly larger than the extra burden imposed by the surcharges.”
In addition to promising more state relief measures “to reduce the pressure” on households, Scholz stated that the government expects energy firms to pass on this reduction in full to customers.
He shared that the issue of social fairness is crucial so that the nation remains unified in this crisis.” German energy network operators’ non-profit Trading Hub Europe announced on Monday that the surcharge had been set at 2.419 cents per kilowatt hour.
This would cost roughly 483.80 Euros ($491.85) before goods and services taxes for a family of four with a yearly average energy usage of 20,000 kwh.
The surcharge aims to distribute the rising costs incurred by energy importers after Russia severely reduced its gas supply to Germany as a result of its invasion of Ukraine.
The higher expenses have so far been absorbed by gas importers themselves but starting on October 1, a new rule approved by the government will allow them to pass on the rising costs to families via the charge.
Chancellor Scholz made an effort to reassure Germans that they will receive state assistance to help lessen the impact of the increased prices.
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