Government pledge on electricity tax needs to be upheld by federal authorities, according to Wegner
Berlin's governing mayor, Kai Wegner, has once again emphasized the need for electricity tax relief, particularly for small and medium-sized businesses. In a statement made to Deutsche Presse-Agentur, Wegner, a CDU politician, expressed his concerns about the rising energy costs affecting businesses and households across Germany.
Wegner called for a reduction in the electricity tax for all, highlighting the significant impact it has on energy-intensive businesses such as bakeries. The focus of his recent statements remains on the electricity tax, a decision made by the leaders of Union and SPD at the federal level.
The coalition agreement includes a reservation regarding financing for the electricity tax reduction. Despite this, Wegner hopes that the Federal Minister of Finance will prioritize this issue, expecting a reduction in electricity tax to benefit everyone.
However, the German federal government has not fully kept a broad promise to reduce the electricity tax for all businesses and private households as urged by Wegner. While energy costs will reduce for private households by up to €150 per year on average, mainly through measures like the abolition of the gas storage levy and lower grid fees, there is no across-the-board abolition or significant reduction of electricity tax for all consumers.
Moreover, recent developments suggest the government is introducing a new surcharge for all electricity customers to fund backup gas power plants, which could increase electricity costs and run counter to pledges of lowering electricity prices. This surcharge, planned as a capacity market mechanism to ensure supply security with gas-fired backup plants by 2030, has been criticized by the opposition as expensive for consumers.
The government has implemented significant tax incentives for businesses in other areas, such as accelerated depreciation and tax benefits for company electric vehicles, and an investment program aiming to stimulate business growth by gradually reducing corporate tax from 2028 onward. However, these do not directly translate to reduced electricity tax for all businesses and private households.
In summary, while the government is taking measures that reduce some energy costs and keep electricity tax low for certain sectors, it has not universally reduced the electricity tax for all businesses and private households as urged by Wegner. Additionally, new levies to fund backup power capacity may increase electricity costs overall. Wegner continues to emphasize the need for tax relief for small and medium-sized businesses, particularly in Berlin.
- Wegner continues to urge for a reduction in electricity tax for all, including small and medium-sized businesses, as the current government measures do not seem to universally lower the electricity tax for all consumers, and new levies might increase electricity costs.
- The focus of Wegner's recent statements in policy-and-legislation, particularly in Berlin's politics, remains on the electricity tax, emphasizing the need for relief, a concern that has also been highlighted in the general news.
