Germany has reduced the fuel tax for two months
The German Bundestag has approved a package of measures to support citizens, which includes a temporary reduction in fuel taxes. The legislation also provides tax breaks on certain payments made by employers, aimed at easing the financial burden on the public.
This was reported with reference to Tagesschau.
"These steps will very quickly improve the situation for motorists and businesses in the country, especially for those who travel a lot by car for professional reasons," commented German Chancellor Friedrich Merz on the decision.
The decision was approved by the Bundestag with 453 votes in favor, 134 against, and one abstention. According to the decision, starting May 1, taxes on diesel fuel and gasoline will be reduced by approximately 17 cents per liter. This measure will remain in effect until the end of June and is expected to cost the state budget approximately 1.6 billion euros.
Following the vote in the Bundestag, the law on reducing the energy tax was also approved at a special session of the Bundesrat.
The reason for this step was the sharp rise in energy prices due to the war in Iran and the blockade of the strategically important Strait of Hormuz. Currently, the average price of Super E10 gasoline in Germany is €2.074, and diesel is €2.150, which significantly exceeds pre-war levels.
In addition, the Bundestag voted to introduce the so-called “relief bonus” (Entlastungsprämie). The decision was supported by the governing coalition factions (CDU/CSU and SPD), while opposition parties voted against it or abstained.
Under this measure, companies will be entitled to pay their employees up to €1,000 in a one-time, tax-free allowance. Businesses will be able to make these payments until June 30, 2027, writing them off as operating expenses. At the same time, this payment is not mandatory, so it is not yet known how many companies will take advantage of this opportunity.
It is expected that the introduction of the bonus will lead to a reduction in tax revenues of at least €2.8 billion, of which about €1.1 billion will come from the federal budget. Final approval of this decision by the Bundesrat is scheduled for May 8.
Fuel prices have stabilized in Ukraine, and diesel has become cheaper.
As a reminder, since March 20, approximately 2 million Ukrainians have already taken advantage of the fuel cashback program. The vast majority of participants are owners of mass-market vehicles.
The Ministry of Economyhas announced when the cashback for January will be paid out.
The Ministry of Economy explained whether the "National Cashback" program will continue in July.
The government explained why they introduced a cashback program for fuel instead of lowering fuel prices.
