Electricity tax cut for industry more expensive than planned
The planned reduction in electricity tax for the manufacturing industry will be more expensive than expected. The traffic light coalition is expecting costs of 3.25 billion euros for both 2024 and 2025. This is according to a draft for the budget financing law, which is available to the German Press Agency. When the concept was presented, government circles had been talking about 2.75 billion euros.
Last week, Federal Chancellor Olaf Scholz (SPD), Finance Minister Christian Lindner (FDP) and Economics Minister Robert Habeck (Greens) put together a package to ease the burden on industry and SMEs in the face of high electricity prices. Among other things, the electricity tax for all manufacturing companies is to be reduced to the minimum level permitted in the EU. It will therefore fall from the current reduced rate of 1.537 cents per kilowatt hour to 0.05 cents per kilowatt hour. This is initially to be regulated by law for the years 2024 and 2025 and financed from the core budget. "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 federal government announced - i.e. if money can be found for this.
The proposed decrease in electricity tax for the industrial sector will significantly increase the budget's expenses, now estimated at 3.25 billion euros for both 2024 and 2025. The reduction in electricity tax for manufacturing companies, including household electricity, will see a significant drop, from 1.537 cents per kilowatt hour to 0.05 cents, but only for 2024 and 2025, as the Bundestag seeks to further extend this relief, contingent on securing financing for the years 2026 to 2028.
Source: www.dpa.com
