Germany cuts gas tax – easing the gas tax burden on consumers

The change takes effect from the beginning of October and will be in effect as long as there is a natural gas surcharge.

The change takes effect from the beginning of October and will be in effect as long as there is a natural gas surcharge.

Germany is temporarily reducing the value-added tax on gas from 19 to seven percent. The aim is to alleviate the situation of companies and households affected by increased energy costs.

Chancellor of Germany Olaf Scholz announced the change at a brief event on Thursday. He said the government expects gas suppliers to fully pass on the VAT reduction to consumer prices.

Germany previously said it would introduce a new “surcharge for natural gas” on October 1, which is 2.419 eurocents per kilowatt hour.

The gas tax will increase energy bills both for business customers who use gas in production processes and for households already suffering from rising heating and food costs.

The purpose of the gas tax levy is to help Uniperia and other major gas importers to cope with the rising natural gas price level.

The purpose of the VAT reduction is to ease the burden caused by the gas tax.

“With this step, we will relieve the burden on consumers in general much more than what is caused by the natural gas surcharge,” Scholz said Thursday.

According to Scholz, the reduced VAT rate is valid while the natural gas surcharge is charged.

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