US EditionGerman parliament approves relief bonus, fuel discount to tackle energy crisis
The package is aimed at easing consumer pressure as fuel prices rise sharply, and it could cost the state about €1.6 billion, officials said.
- On Friday, the Bundestag approved a tax-free 'relief bonus' of up to 1,000 euros and fuel tax cuts to cushion rising energy costs stemming from the war in Iran.
- Fuel prices have surged since the war on Iran began in late February, prompting the government to implement measures costing around 1.6 billion euros to assist consumers and businesses.
- Energy taxes on diesel and gasoline will decrease by about 0.17 euros per litre from May 1st through June, while employers may voluntarily offer one-off tax-free bonuses to workers.
- German Finance Minister Lars Klingbeil defended the plan in parliament, but the German Retail Association and lawmakers criticized the policy for shifting financial burdens onto struggling businesses.
- Carsten Brzeski of ING noted the stimulus addresses short-term relief, though the government struggles to balance these measures with necessary, long-term structural economic reforms.
45 Articles
45 Articles
The mineral oil tax on petrol and diesel will be lowered for two months on 1 May. According to the resolution of the Bundestag, the Federal Council allowed the "tank discount" to pass in a special session. Also the regulation for the tax-free "discharge premium" was launched.
Germany's lower house of parliament on Friday approved a tax-free relief bonus of up to 1,000 euros ($1,170) for workers and a fuel discount for May and June as part of a package to cushion the impact of higher petrol prices due to the Iran war.
On Friday, the German Bundestag decided on a fuel discount for May and June, which is intended to reduce the prices of petrol and diesel by up to 17 cents per litre. Furthermore, the Bundestag gave the green light for a discharge premium that can be up to a thousand euros high (see video above). The fuel discount is to apply for May and June. Specifically, the taxes on diesel and petrol will be reduced by around 17 cents per litre by the end of …
The coalition relieves motorists with a fuel discount – for a short period of time. What now applies – and when.The Bundestag has decided on the fuel discount to relieve fuel prices.This will reduce taxes on diesel and petrol by around 17 cents per litre from the beginning of May to the end of June.Since the beginning of the Iran war at the end of February, fuel prices have risen sharply and, despite an interim decline, are still well above thei…
Price relief for consumers and businesses is estimated at EUR 1.6 billion; economists argue that governments should offer more targeted aid to vulnerable families
Due to the Iran war, petrol and diesel prices have also risen extremely in Germany. Bundestag and Bundesrat have now decided on a tank discount on May 1st. The measure is to apply for two months.
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