Tank discount falls through with economists - economy: "Tax money for Putin energy"

Created: 05/20/2022, 05:13

By: Lisa Mayerhofer

On Thursday, the Bundestag will vote on numerous other laws, including the three-month tank discount.

(symbol photo) © Sebastian Willnow/dpa

The tank discount is about to be voted on.

Experts criticize that the measure not only has no effect, but that taxpayers' money could also fall into the wrong hands.

Berlin – On Thursday, the Bundestag voted on numerous other laws, including the three-month tank discount.

The traffic light coalition decided on this measure as part of the relief package in order to relieve the population in view of the sharp rise in energy prices.

In the run-up to this, however, there has been sharp criticism from numerous experts.

High fuel prices: Relief through the tank discount

The tank discount refers to the temporary reduction in the energy tax on fuels to the European minimum.

The tax relief for petrol is just under 30 cents per liter and for diesel it is 14 cents per liter.

Specifically, the tank discount should apply for three months in 2022 – from June to August.

After that, the energy tax will be raised again to the previous level.

Only: The high fuel prices have fallen again after the record highs.

Experts fear that government measures such as the tank discount will dampen the competitive pressure on the mineral oil companies and that they will have no incentive to further reduce prices for consumers. 

"Tax money for Putin energy": Sharp criticism of the tank discount

Numerous economists are also critical of the tank discount because it relieves high earners instead of low earners.

Clemens Fuest, President of the Munich Ifo Institute, told the

"Relief should not be given with a watering can, but in a targeted manner."

Economic expert Veronika Grimm emphasized: “The discussion about tank discounts is completely out of date.

We must relieve the burden on lower and middle incomes.

However, fuel discounts relieve high earners more because they own more cars and drive longer distances.” In this context, Fuest also spoke of a “redistribution from bottom to top”.

Grimm also said that one needs "the dampening effect of high prices on demand in order not to face even greater challenges than already in the event of a shortage of fossil fuels".

She also doubts that petrol stations will pass on the discount in full.

"Money thrown out the window" is what the economist Jens Südekum from the University of Düsseldorf calls the tank discount, according to Tagesschau.

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Energy expert Claudia Kemfert, professor at the German Institute for Economic Research, finds just as clear words: "A tank discount is economically and ecologically nonsensical, and also socially unfair, since high income earners are more favored," said Kemfert of the

.

“It is not prices that need to be capped, but costs.

Tax money for Putin energy is not a good idea.” With the tank discount, expensive energy from Russia continues to be paid for with enormous tax money and ends up in the hands of the mineral oil companies, which would make war profits anyway.

FDP sticks to tank discount

Despite lower prices and harsh criticism, the FDP is sticking to the planned tax cuts for petrol and diesel.

The tank discount is "sensible in view of the discussion about an oil embargo" against Russia, said FDP parliamentary group leader Johannes Vogel.

There is still no agreement on this in the EU, but he hopes that it will come to that.

"I can very well imagine that we will see market reactions to this again."

The tank discount, which is to apply to June, July and August, therefore comes “at a very important time,” said Vogel.

The decision on an oil embargo against Russia could trigger an "excessive market reaction".

"Then I think it's good to relieve the burden on the citizens, prophylactically."