Electricity price reduction: plans do not go far enough for the economy
The Rhineland-Palatinate business community does not think the federal government's plans to reduce the price of electricity go far enough. "First of all, it is good news that the federal government has finally been able to agree to reduce the burden on industry by lowering electricity tax to the European minimum level," said Karsten Tacke, Managing Director of the Rhineland-Palatinate Business Association (LVU), in Mainz on Thursday.
"However, it is also clear that Rhineland-Palatinate is an above-average energy-intensive industrial location and is therefore dependent on significant relief." It remains to be seen whether the package of measures as a whole is suitable for securing the location in the region. "I therefore expect the federal government to closely monitor the effectiveness of the measures and, if necessary, put the issue back on the agenda."
The Association of Municipal Enterprises (VKU) in Rhineland-Palatinate expressed a similar view: "The reduction in electricity tax is a relief for industry and the manufacturing sector," explained Managing Director Ingbert Liebing. This is also a more sensible solution than an industrial electricity price for a smaller, limited group of recipients. "However, we would have liked to see more consistency and courage in implementing the reduction in electricity tax for all customers."
A sustainable reform of taxes and levies on energy in general would also be desirable, explained Liebing. VAT on gas and heat supplies in particular should remain at seven percent until the end of March next year so that private consumers can also benefit.
The German government wants to reduce the price of electricity for the economy through a tax reform. According to Deutsche Presse-Agentur, plans include a significant reduction in electricity tax for the manufacturing industry and an extension of the current electricity price compensation for companies that are particularly affected by high electricity prices.
The planned reduction in electricity tax is initially to be regulated by law for the years 2024 and 2025. "There is agreement that the reduction should apply for a further three years, provided that counter-financing can be provided in the federal budget for the years 2026 to 2028," the German government announced in Berlin.
The Federal Government's plan to reduce electricity tax for industry to the European minimum level is appreciated by associations, but they believe Rhineland-Palatinate, with its energy-intensive industries, needs more significant relief. The Association of Municipal Enterprises (VKU) suggests a more consistent reduction in electricity tax for all customers, not just a limited group.
Source: www.dpa.com
