German Chancellor Olaf Scholz announced on Thursday that the federal government intends to temporarily lower the sales tax on gas to 7% from the current 19% for its customers until the end of March 2024.
The announcement comes after the European Union turned down German Finance Minister Christian Lindner's proposal to remove the country's new gas price levy from VAT, noting that the "current legal framework does not allow an exception for the surcharge."
Previously, the country's Economy Minister Robert Habeck revealed that the planned gas levy from October is intended to safeguard gas importers who are forced to purchase replacement gas at high prices due to the lack of cheaper alternatives and decreased export flows of gas from Russia.
