Plans to Increase Energy and Electricity Tax

In an effort to reduce subsidies, the finance ministry is planning to reduce electricity and energy tax reductions, Frankfurter Allgemeine Zeitung (FAZ) reports. According to the paper, the finance ministry has sent a draft bill amending the Electricity Tax Act (Stromsteuergesetz – StromStG) and the Energy Tax Act (Energiesteuergesetz – EnergieStG) to the other ministries involved.

Even though the present bill has been softened regarding small-sized companies, their tax burden will still double, FAZ writes. Energy-intensive companies with a relatively small staff will allegedly incur even higher taxes than originally planned.

The finance ministry expects to increase tax revenue in 2011 by EUR 1 billion and in 2012 by EUR 1.5 billion, FAZ says.

Source: Frankfurter Allgemeine Zeitung, 28 July 2010, page 9