Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Germany to lower sales tax on gas to 7% in bid to relieve consumers

Published 08/18/2022, 06:34 AM
Updated 08/18/2022, 06:51 AM
© Reuters. German Chancellor Olaf Scholz gives a press statement about the gas levy at the Chancellery in Berlin, Germany August 18, 2022. REUTERS/Lisi Niesner

BERLIN (Reuters) - Germany will lower the sales tax on gas to 7% in an effort to cushion the blow of additional charges being placed on consumers to ensure energy companies can afford increasingly expensive supplies, said Chancellor Olaf Scholz on Thursday.

The reduced tax rate will apply as long as the levy is charged, meaning through March 2024, added Scholz.

Germany had been in talks with the European Commission this week to find another way to reduce the cost burden on consumers after the commission had said Germany's bid for an exemption on value-added tax was not possible.

The measure comes after levies were announced this week that will tack on hundreds of euros to an average family's energy bill.

The levies will be imposed from Oct. 1 in a bid to help Uniper - the country's largest importer of Russian gas - and other importers cope with soaring prices.

Latest comments

guess I'll Google what the sales tax is now 🤷🏽‍♂️
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.