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VAT reduction planned: Traffic light coalition wants to make district heating cheaper

2022-09-28T15:30:20.139Z

District heating is also generated to a large extent from the combustion of gas. Now the government wants to extend the planned VAT reduction to this type of heating.



Enlarge image

Value-added tax is also to be reduced for heating with district heating

Photo: Hauke ​​Christian Dittrich / dpa

Anyone who heats with district heating should be relieved from October 1st.

To this end, the coalition of SPD, Greens and FDP plans to reduce VAT for this type of heating.

This emerges from a draft resolution for the finance committee that is available to SPIEGEL.

So far, the plan was to reduce VAT on natural gas from 19 to 7 percent, which the Bundestag could decide on Friday.

Chancellor Olaf Scholz had said beforehand that he expected companies to pass the tax cut on to customers.

The coalition's now expanded plans provide that the reduced tax rate "also applies to the supply of heat via a heating network" until March 31, 2024, as stated in the draft resolution.

District heating also results to a large extent from the burning of gas.

However, the exact origin is irrelevant for the application of the reduced tax rate.

A corresponding differentiation would involve a great deal of bureaucracy.

The planned changes resulted in reduced tax revenues of 2.1 billion euros.

sol/dab

Source: spiegel

All business articles on 2022-09-28

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