German Chancellor Olaf Scholz said Thursday that Germany will temporarily decrease natural gas taxes to relieve pressure on households dealing with high energy bills exacerbated by Russia and Ukraine war.
The revelation was made at a hurriedly called news conference in Berlin, a day after Scholz faced angry demonstrations during a town hall gathering outside the capital.
Scholz stated that his government had chosen to reduce the value-added tax on gasoline from 19% to 7% until March 31, 2024.
“The rising gas prices are a big burden for many citizens,” Scholz said, adding that further measures would be announced in the coming weeks.
In addition to increased wholesale natural gas costs caused by Russia and Ukraine war earlier this year, German consumers will be subjected to a new levy to support energy businesses rushing to find new suppliers on the worldwide market.
Russia has decreased natural gas deliveries to Germany and other European nations, which are required to generate electricity, run factories, and heat homes in the winter, and there are fears that additional cuts may be made as the weather cools and demand rises. High prices as a result are boosting inflation, diminishing people’s purchasing power, and heightening the prospect of a recession.
Source: AP News