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Germany to introduce already announced additional tax on gas consumption

Europe: Germany will introduce its previously-announced additional tax on gas consumption, declared Trading Hub Europe, from October, the umbrella organisation responsible for the German gas market, on Monday.

Since Russia has gradually shut off the gas tap, the tax of 2.4 cents per Kilowatt-hour (kWh) should help importers of gas who are faced with higher costs. Through the Nord Stream 1 gas pipeline, Germany received only 20 percent of the maximum amount of gas.

Moreover, for a four-person household, the tax would amount to up to €480 per year without VAT. In the meantime, the government of Germany has also made announcements about new aid measures to relieve the pressure on consumers already.

The government spokesperson Christiane Hoffmann mentioned in the statement, “When the tax comes into force on October 1, there will also be further aid measures for citizens.”

Whether VAT will have to be paid is not yet clear, the German government has asked the European Union for a VAT exemption in an effort to minimise the burden on consumers.

Meanwhile, a spokesperson for the Finance Ministry in Berlin shared the information that there are no answers and replies have been received.

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