Lower Increase of Energy and Electricity Tax?

After Chancellor Merkel had announced a review of the governments plans to revoke tax exemptions for the manufacturing industry with respect to the Electricity Tax Act (Stromsteuergesetz – StromStG) and the Energy Tax Act (Energiesteuergesetz – EnergieStG) in late September, Frankfurter Allgemeine and Focus report that the government agreed on a lower increase of the energy and electricity tax as previously planned. Tax losses shall be compensated by an increase of the tobacco tax.

According to Focus, Finance Minister Wolfgang Schäuble will only collect an additional EUR 500 million instead of EUR 1.5 billion as originally proposed. FAZ reports that the reduced tax rate will only apply if a threshold of EUR 1,000 for the Electricity Tax is exceeded (former threshold: EUR 512.50), a further reduction of the already lowered threshold of EUR 2,500. Peak compensation payments (Spitzenausgleich) for energy-intensive companies will only be reduced from 95% to 90% instead of 73%, FAZ says.

The decision has been welcomed by Peter Müller (CDU), state premier of Saarland, a fellow party member of Chancellor Merkel. It ensured that German companies remained competitive, he said.

Source: Frankfurter Allgemeine Zeitung, Focus

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