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Söder calls for reduced VAT for energy and fuels

2021-10-31T07:14:38.710Z


The prices for diesel, gasoline and heating are rising rapidly. Should the state intervene to relieve consumers? CSU boss Söder advocates lowering the tax.


Enlarge image

Price board at a motorway filling station in Baden-Wuerttemberg

Photo: Arnulf Hettrich / imago images / Arnulf Hettrich

In view of the rapidly rising gas and petrol prices, CSU boss Markus Söder has demanded a reduction in VAT on energy and fuels.

"We have to meet the citizens in terms of tax in these difficult times," said Söder of the "Bild am Sonntag".

A reduced VAT rate on energy and fuels "would relieve the citizens of the worst hardships."

In addition, according to the report, Söder called for a price brake for the winter and a gas strategy that should secure Germany's supply.

"This also includes the commissioning of Nord Stream 2. The traffic lights must act quickly," said the Bavarian Prime Minister with a view to the handling of a new federal government made up of the SPD, the Greens and the FDP with the controversial German-Russian gas pipeline.

The gas price in particular had exploded in the past few months.

But oil, petrol, diesel and electricity also became significantly more expensive.

Almost three quarters of Germans would therefore like relief from fuel prices, according to a survey.

In fact, diesel is more expensive than ever, and at some motorway filling stations the price of gasoline has already cracked the two-euro mark.

The main driver of prices is the price of crude oil, which was recently as high as it has been for years.

The stronger dollar also has an impact because oil is traded in US currency.

The development is particularly drastic if you compare it with the previous year.

At that time, oil and fuel prices had reached lows due to the corona crisis before the trend reversal occurred at the beginning of November 2020.

A large part of the fuel price at the pump are taxes and duties.

For diesel, at the current price level, this is around 25 cents VAT, a good 47 cents mineral oil tax and just under eight cents from the recently introduced CO₂ tax.

You can read detailed analyzes of the causes and consequences of the rise in fuel prices here:

  • The Germans and their fat cars: anger over rising fuel prices?

    It's your own fault

  • Debate about fuel prices and commuter flat-rate: "A lot of money goes to people who don't need it"

  • Where subsidies could be dismantled: Germany's 200 billion treasure trove

oka / AFP

Source: spiegel

All business articles on 2021-10-31

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