Steer
Electricity tax reduction for industry more expensive than planned
The traffic light coalition’s planned reduction in electricity tax for the manufacturing sector will be more expensive than expected, with costs of 3.25 billion euros for 2024 and 2025.
Last week, Chancellor Olaf Scholz (SPD), Finance Minister Christian Lindner (FDP) and Economics Minister Robert Habeck (Greens) put together a package to relieve the burden on industry and small and medium-sized businesses in view of the high electricity prices. Among other things, the electricity tax for all manufacturing companies is to be reduced to the minimum value permitted in the EU. This means it falls from the current reduced rate of 1.537 cents per kilowatt hour to 0.05 cents per kilowatt hour. This should initially be regulated by law for the years 2024 and 2025 and financed from the core budget. “There is agreement that the reduction should apply for another three years, provided that counter-financing can be provided in the federal budget for the years 2026 to 2028,” the federal government announced – that is, if money can be found for it.