Gas surcharge relief: Scholz announces VAT reduction - Habeck appeal to companies follows

Created: 08/19/2022, 05:01

By: Andreas Schmid

The federal government wants to temporarily reduce VAT on gas.

"You'll never walk alone," said Chancellor Scholz.

Update from August 18, 1:40 p.m .:

Economics Minister Robert Habeck (Greens) is urging that the announced reduction in VAT on gas be passed on.

"I expect companies to pass this reduction on to consumers 1:1," explained Habeck on Thursday.

Habeck welcomed Scholz's announcement to reduce VAT on gas.

"It was always clear: we don't want people to be additionally burdened with VAT on the gas levies.

Since a direct tax exemption is not possible under European law, a temporary reduction in VAT on gas makes sense.” To make it easy and to reach consumers quickly, the reduction to seven percent makes sense.

"This also compensates for other costs that are incurred through higher allocations."

The reduction in VAT is only one step.

“There will be a third relief package to ease the huge pressure that is on many people and businesses.

This pressure is all the greater, the less income you have.” Accuracy is important here.n.

Chancellor Olaf Scholz speaks on Thursday about the gas levy.

© Kay Nietfeld/dpa

Gas surcharge relief is in place: Scholz announces a reduction in VAT

Update from August 18, 12:20 p.m

.: Chancellor Olaf Scholz announces new relief.

Value-added tax on gas consumption will be reduced from 19 to 7 percent for a limited period of time.

The rule applies until March 31, 2024. "With this step, we are taking a much greater burden off gas customers overall," says Scholz.

"We expect companies to pass this reduction on to consumers on a one-for-one basis."

Scholz repeats the saying "You'll Never Walk Alone" and assures a third relief package.

Shortly thereafter, the Chancellor's statement is over.

The SPD politician did not comment on the Holocaust scandal surrounding Palestinian President Abbas.

Gas surcharge: Scholz renewed promises of further relief

Berlin – Chancellor Olaf Scholz commented on the gas levy on Thursday afternoon.

We accompany the press conference in the live ticker.

It's supposed to start at 12:15 p.m.

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On Thursday, Scholz reiterated his promise of further relief to help citizens fight inflation and high energy prices.

The previous decisions of the traffic light coalition bring the population 30 billion euros, and not all of it has arrived, said the SPD politician on Wednesday evening in Neuruppin, Brandenburg.

But it is clear: “More has to happen.” The government will decide on this “in the next few days”.

Scholz also promised a permanently "stable level of pensions" in response to a corresponding question in a citizens' dialogue.

It is about long-term security, "so that you can rely on the fact that this is a perspective", even for 17-year-olds today.

When asked by a sixth grader, Scholz agreed that despite the lack of gas, school operations would be secured in winter, including activities in gyms.

"I'm pretty confident that we can manage it." The Chancellor defended the gas levy that will apply from October.

The event on the school square in Neuruppin was accompanied by loud protests.

Demonstrators shouted "traitors of the people", "liars" and "get away".

Scholz could hardly be understood.