In order to lessen the financial strain on German customers, the German State Council has voted to lower the value added tax on natural gas and central heating connections as of this October.
The Council eventually gave its approval to a measure allowing for a temporary reduction in the tax on gas supply today, on Friday.
As a result of the oil crisis, the tax rate will temporarily drop from 19 to 7%.
This will be in effect through the end of March 2024, the Council concluded.
The tax reduction was adopted a week ago by the German “Bundestag” parliament.
Originally, this choice was taken to prevent the state from obtaining funds from all customers for the contentious gas surcharge.
The tariff was designed to aid struggling gas importers whose projects had previously relied on inexpensive Russian gas supply.
The levies were later dropped by the federal government.
The value-added tax will continue to be reduced, according to the Berlin government, in an effort to make things easier for consumers.
The Ministry of Finance, meanwhile, made adjustments to its accounts to account for the anticipated “cold development” of inflation forecasts.
According to a Friday report from the German editorial network (RND), this would result in more relief than initially anticipated, and as a result, legislative plans will be changed to reflect the current inflation predictions of 8.
8% for 2023.
By implementing the third relief package of the ruling coalition, about 48 million people in Germany will no longer be subject to these taxes.
The German State Council chooses to lower the additional gas tax.
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