Traffic light allows the VAT reduction for gas to expire a little later

2024-02-22T15:41:42.960Z

Highlights: Traffic light allows the VAT reduction for gas to expire a little later. With lower taxes on gas and district heating, the government wanted to limit the burden on citizens. The measure was supposed to expire at the end of February, but the traffic light has now made a small change to the schedule. For a family with an annual consumption of 20,000 kilowatt hours of gas, the costs this year would be around 200 euros higher than with a further reduction in VAT. However, since gas prices have fallen significantly overall in the past few months, costs for many consumers are likely to be lower overall.

With lower taxes on gas and district heating, the government wanted to limit the burden on citizens. The measure was supposed to expire at the end of February, but the traffic light has now made a small change to the schedule.

Enlarge image

Gas meter in the basement of a single-family home

Photo: Patrick Pleul/dpa

The VAT cut for gas is not due to expire until the end of March - a month later than planned.

This emerges from the result of the mediation committee of the Federal Council and the Federal Council on the so-called Growth Opportunities Act.

According to the version adopted by the federal law, there was still talk of the reduction expiring at the end of February.

Because of the increased energy prices after the Russian attack on Ukraine, the federal government reduced the VAT rate for gas and heat from 19 to 7 percent, making both cheaper.

According to current law, the measure is set to expire at the end of March.

A spokesman for the SPD parliamentary group said on Thursday that with the Growth Opportunities Act, the reduced tax rate for the supply of gas and heat should expire on February 29th.

»This measure has been deleted.

So the reduced tax rate doesn’t expire until the end of March.”

200 euros additional charge per year

The municipal utilities association VKU welcomed the decision of the mediation committee.

Managing Director Ingbert Liebing said: “That’s right and a good thing.

Clarity was needed, the long hang-up has been resolved.

An early tax increase would have made gas and electricity more expensive for everyone sooner.

This would have been in complete contradiction to the aid for the economy that was being debated.”

The amended Growth Opportunities Act still has to pass the Bundestag and Bundesrat.

It is unclear whether the Union agrees to the law.

According to the current sales tax law, the VAT reduction expires at the end of March anyway.

According to the Verivox portal, households must expect significant additional costs due to the return to the original tax rate.

For a family with an annual consumption of 20,000 kilowatt hours of gas, the costs this year would be around 200 euros higher than with a further reduction in VAT.

However, since gas prices have fallen significantly overall in the past few months, the costs for many consumers are likely to be lower overall than in the past two years.

beb/dpa

Traffic light allows the VAT reduction for gas to expire a little later

200 euros additional charge per year

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