German Finance Minister writes to Brussels about VAT exemption for gas tax
The manager of the German gas market will announce the publication on Monday of the levy to spread the extra costs of gas imports.
The levy is designed to help Uniper and other importers cope with the rapid prices caused by Russian export flows, but would further exacerbate soaring energy prices and the greatest pressure on customers.
Under EU legislation on VAT on energy products, the charge is seen as part of the total gas price, which effectively means that it is mandatory, and therefore Germany must
Lindner said he was asking on behalf of Germany, of course, but he was in fact asking for a change in VAT legislation, to allow for all changes to be made.
In Lindner’s English-language letter, dated August 12, Germany would later submit a flour request to the EC, but that he wanted to appeal to Brussels in advance for the thoughts that the policymakers were concerned about the emergence of hardships and wrestling .
“VAT imposed by the government is pushing up prices and meeting more popular resistance, especially in the current situation,” he said.
“However, the development of tax laws through is critical to enforceability,” he said.
Russia has blamed the flows to Europe via the Nord Stream 1 pipeline in mid-June for the amounts reached, blamed for faulty and delayed equipment, since Europe says the move is political.
Utilities – sandwiched between importers and squeezed end consumers – are slated to be slashed with spine-chilling costs.
“Rising energy prices are a risk to our prosperity and stability,” Lindner said.
The government so far expects a levy of 1.5-5.0 eurocents per kilowatt-hour (kWh) on consumers to pay 90% of the higher cost of wholesale gas, plus a not yet envisaged levy for gas storage, died on Aug. 18 will be provided.