Because of record levels in gasoline prices, CSU boss Markus Söder now wants to lower the value added tax for it.
A mere tax cut, however, does not automatically lead to lower fuel prices, according to economists.
Berlin - CSU boss Markus Söder has spoken out in favor of lowering VAT on gasoline in view of rising energy prices.
"When it comes to gasoline, we should consider whether we can temporarily reduce the value added tax to the reduced rate," he told the newspapers of the Funke media group.
A capped industrial electricity price should be introduced for the economy.
In addition, the EEG surcharge for green electricity subsidies would have to be reduced to zero and the electricity tax to a European minimum, said Bavaria's Prime Minister.
He recently called on the coalition negotiators of the SPD, Greens and FDP to reduce VAT on energy and fuels.
The value added tax on gasoline is currently 19 percent.
The reduced rate of 7 percent is applied to groceries, books and tickets for local public transport, among other things.
The price of petrol is rising immensely
Last Tuesday the gasoline price reached an annual high, according to ADAC. A liter of Super E10 therefore cost a nationwide average of 1.680 euros, after 1.675 euros in the previous week. That was the highest value in more than nine years. According to ADAC, the previous record of 1.709 euros came from 2012. The price of diesel has also continued to rise recently.
In October, according to preliminary data from the Federal Statistical Office, the total cost of energy rose sharply by 18.6 percent within a year. The rise in prices thus accelerated. Rising energy prices have been fueling inflation for some time. In addition, the withdrawal of the temporary VAT cut is having an impact. Regular VAT rates have been in effect again since January 2021, so goods and services are tending to become more expensive again. In addition, there are material shortages and delivery bottlenecks as well as the CO2 tax. Since the beginning of the year, 25 euros per tonne of carbon dioxide that is created when diesel, gasoline, heating oil and natural gas are burned are due.
For years, rising fuel prices have repeatedly triggered a debate about tax cuts and government interventions such as price caps.
A large part of the fuel price at the pump are petroleum tax, VAT and the price of CO2.
Economists disagree with Söder
Economists argue that a mere tax cut does not automatically lead to lower fuel prices.
Lower taxes could even encourage oil companies to raise prices more strongly - in order to then benefit from them.
Critics of government intervention also point out that high oil prices strengthened incentives for economical consumption.
It is also a fallacy that high fuel prices at least lead to higher VAT revenues.
After all, each euro can only be spent once.
Söder said that one could not sit and watch as prices rise before the cold winter.
In order to secure the energy supply, it also makes sense that the Nord Stream 2 Baltic Sea pipeline should be opened soon.
“We have the exit from coal, the exit from nuclear energy, an increasing scarcity of resources, rising prices and a growing demand for electricity due to digitization and electromobility.
That is why we need gas-fired power plants. ”Nord Stream 2 is a secure basis for the stable availability of gas in Germany, said Söder.
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The inflation rate in Hessen is four percent
Consumer prices have continued to rise in Hessen.
In September 2021, according to the State Statistical Office on Thursday, there was an increase of four percent compared to the same month last year.
The inflation rate was 3.7 percent in August and 3.4 percent in July.
As in the previous months, the increase is largely due to the fact that VAT was temporarily reduced in the same period of the previous year.
The inflation rate in Hessen is four percent
Nord Stream 2 filled with gas for the first time
For the first time, gas has been filled into the controversial Nord Stream 2 Baltic Sea pipeline.
However, the actual gas transport is still pending.
Will it lead to lower prices in the gas market?
Nord Stream 2 filled with gas for the first time
Prices for heating oil and fuel have risen significantly
Saarland households currently have to pay significantly more to fill their heating oil tanks than they did a year ago.
The Saarland Statistical Office announced on Thursday that heating oil was 83.1 percent more expensive than in the same month last year.
Other forms of energy are now following suit: district heating has become 10.4 percent more expensive, gas by 9.2 percent and electricity by 4.5 percent.
Prices for heating oil and fuel have risen significantly
Technically, at least the first strand of the pipeline has already been approved for operation.
Gas transport into the German internal market is not yet permitted because certification from the Federal Network Agency is pending.
Without this there is a risk of fines.
The middle class is calling for a temporary halving of the mineral oil tax.
"In order to quickly relieve the burden on companies and private consumers, the mineral oil tax should be cut in half for a limited time and the commuter flat-rate increased noticeably," said the federal manager of the Federal Association of Medium-Sized Businesses, Markus Jerger, to the newspapers of the Funke media group.
Jerger refused to abolish the commuter allowance.
dpa