Less VAT on gas: gift with a catch – economy

There are still a good six weeks left before the gas surcharge will take effect. It will give millions of households in Germany higher gas bills, many of whom have to reckon with several hundred euros more a year – and that on top of the prices, which have already risen. Politically, quick answers are needed – and Chancellor Olaf Scholz (SPD) delivered them on Thursday by lowering VAT on gas on October 1st. The advantage: This is a broad relief for all gas customers, and it can be implemented quite easily and quickly. The bill says seven instead of 19 percent tax – that’s it.