High energy costs: district SPD calls for a reduction in VAT – district of Munich

The Social Democrats propose temporarily halving the taxes on electricity, heating oil, gas and petrol or even permanently reducing them to seven percent.

The SPD Munich-Land has thought about which political measures could be taken to counteract the sharp rise in energy prices and thus relieve the burden on the citizens. The federal government’s approach of abolishing the electricity price surcharge to promote energy production from renewable energies (EEG surcharge) by 2023 at the latest is correct, but does not go far enough, according to district chairman Florian Schardt. In addition, he and the comrades from the district are demanding that VAT on electricity, heating oil, gas and petrol be halved. It must be ensured that the relief is passed on to private households.

With the positioning, they want to make it clear that “we can only manage a mammoth project like the energy transition if society stays together,” says Schardt. It is the task of the SPD, “to be the advocate of those who cannot simply shake higher costs out of their sleeves or who are burdened disproportionately in relation to their income”.

It remains to be seen whether the high energy prices are only temporary and linked to disrupted supply chains and geopolitical risks, said the district chairman of the Social Democrats. “In any case, a pragmatic solution is needed in the short term.” This could also be limited in time and reversed as soon as the situation eased. However, the district SPD is fundamentally up for discussion as to whether, in parallel with the politically desired increase in the CO₂ tax, the value added tax on electricity and heating should not be set at the lower rate of seven percent. Sales tax is 19 percent, with the exception of “important everyday goods”, which are taxed at seven percent. “However, it is not always clear what this includes,” says Schardt.

Federal Finance Minister Christian Lindner (FDP) brought up the idea on Monday to abolish the EEG levy “in just a few weeks” and to support citizens who are burdened by high energy costs with relief, for example with income tax.

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