Green Party leader Ricarda Lang is in favor of presenting a new relief package in parallel with the introduction of the gas levy in October. “Even if everyone has to pay the high energy prices, it will be people with small and medium-sized incomes in particular who will face considerable difficulties,” Lang said in Berlin. “The goal must be that they benefit absolutely more from the relief than those with strong shoulders who can carry more.”
In concrete terms, Lang also proposes a new edition of the energy price flat rate in addition to a greatly expanded housing benefit or higher child benefit. In addition, it is good that the Ministry of Finance is checking whether the VAT can be applied to the levy. A so-called excess profit tax for companies that benefited from the energy crisis is also an option.
Due to a state gas levy, millions of customers are threatened with additional costs from autumn. Municipal utilities and suppliers should be allowed to make corresponding additional demands from October 1st. How expensive it will be should be clear this Monday when the amount of the levy is announced. The Ministry of Economics recently assumed a range of 1.5 to 5 cents per kilowatt hour, which would mean considerable additional costs for customers. Economics Minister Robert Habeck (Greens) said he expected “several hundred euros per household” per year. The surcharge is intended to benefit gas suppliers who have to buy a replacement for the missing, cheaper gas volumes from Russia at high prices.
However, the levy will not be visible immediately on the invoices, but with a slight delay, according to the Ministry of Economic Affairs. For reasons of consumer protection, there are notice periods in the Energy Industry Act of four to six weeks that must be observed. Therefore, the surcharge will probably be shown on the invoices for the first time in November/December with a slight delay.
Criticism of Lindner’s tax plans
The Greens continue to be critical of the tax plans of Federal Finance Minister Christian Lindner (FDP) to reduce the cold progression. “The Finance Minister’s proposal is primarily aimed at favoring top earners, who often have incomes well in excess of 100,000 euros. This is not an appropriate proposal in the current situation,” said parliamentary group leader Andreas Audretsch Rheinische Post. He called for tax relief for small and medium-sized incomes, higher standard rates for basic security and direct payments.
In view of the persistently high inflation, Lindner wants to avert imminent tax increases amounting to ten billion euros. According to the FDP boss, 48 million people should benefit from this. Lindner wants to adapt the tax system for 2023 and 2024 to inflation. In the income tax scale, the cold progression can mean that a salary increase leads to higher taxation even if it is actually eaten up by inflation.
Chancellor Olaf Scholz (SPD) had welcomed Lindner’s proposals, but also promised help for the poor. Economics Minister Habeck had requested changes to compensate for the high energy prices. Lower incomes should benefit more from the relief than higher ones.