Sports: VAT on gas and district heating will decrease from October

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for the catching up of high energy prices will fall on natural gas deliveries and district heating from October. The Bundestag decided that the tax rate is temporarily reduced from 19 to 7 percent due to the energy crisis. This should apply by the end of March 2024.

Der Deutsche Bundestag hat die Senkung der Mehrwertsteuer auf Erdgas und Fernwärme beschlossen. © Bernd von Jutrczenka/dpa The German Bundestag has decided to reduce VAT on natural gas and district heating.

Gas prices continued to increase, finance minister Christian Lindner (FDP) justified the tax cut. "And the state must not be a profiteer from the fact that life will become more expensive for people."

The traffic light coalition called for the energy suppliers to pass the tax reduction in full to consumers. "Unfortunately, the state cannot guarantee that it is passed on to consumers," admitted the financial politician of the Greens, Katharina Beck. "And besides, you relieve those who consume a lot and tend to have more money than those who use little and tend to have less money." Nevertheless, the overall package is correct.

What the wholesale has to do with the final customer price

 What the wholesale has to do with the final customer price when looking at the natural gas wholesal trade prices has become dizzy in the past few weeks - especially because of the amount. On August 26th, a few days before the delivery of the Baltic Sea pipeline Nord Stream 1, October-Erdgas at times cost almost 347 euros per megawatt hour. For comparison: On February 1, a few weeks before Russia against Ukraine a few weeks before Russia, he was still 72 euros.

This means that the reduction specifically

would have to drop by 7.3 percent according to the invoice of the Verivox comparison portal. For a family with a gas consumption of 20,000 kilowatt hours, this means a relief of 366 euros a year.

The opposition Union criticized that if the gas price is tripled or quadruple, this was only a drop on the hot stone. The bottom line could even happen that a household, even with the low tax rate due to the high prices, pay even more VAT than before at low prices and a higher tax rate.

About half of all apartments in Germany are heated with gas, around 14 percent of households, especially tenants in East Germany, use district heating. Overall, the state will take around 13 billion euros less by 2024 by 2024.

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actually introduced because of the gas surcharge

was originally launched so that the state did not earn the controversial gas surcharge for all gas customers. This levy should help support battered gas importers who have so far built their business on cheap Russian gas. On Thursday, however, the federal government decided to tip the gas surcharge and stabilize the three affected companies in a different way. The traffic light coalition still adheres to the reduction in VAT in order to further relieve consumers.

Lindner also defended the 200 billion euro aid package, with which the federal government wants to finance price lids on electricity and gas, among other things. It is Germany's answer to the energy war of Russian President Vladimir Putin. Putin wants to shake prosperity in Germany so that the citizens are less solidarity with Ukraine. But that will fail, emphasized Lindner.

becomes the "double boobs" a "debt booze"?

Union faction vice Mathias Middelberg criticized that at the present time, the package baptized by Chancellor Olaf Scholz was "nothing more than a debt booze". Because what the government wants to finance it is completely unclear, there is no calculation or the basis for calculation.

In fact, there is no concept for the planned price lids. A commission is to develop the gas price brake in mid -October. It is open, for example, whether only a basic consumption is kept artificially cheap or the entire gas use. Critics fear that there will be no incentive to save the water.

from the Leyen openly for general gas price lids .
EU Commission President Ursula von der Leyen has opened openly for a basic price lid on gas. © Philipp von Ditfurth/dpa Ursula von der Leyen in the European Parliament in Strasbourg. "Such an upper limit for gas prices must be designed in such a way that the security of supply is guaranteed," said the German politician in the Strasbourg European Parliament. In addition, it must be a temporary measure "until we have developed a new EU price index that ensures better functioning of the market".

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