Germany is preparing another package of inflation relief. He also plans to introduce a special profits tax.



Has been updated 9 minutes ago

Germany is preparing another set of measures to protect consumers and businesses from the impact of soaring inflation worth €65 billion (1.6 trillion crowns). This was reported by Reuters on Sunday, citing documents issued by the German government. Chancellor Olaf Scholz announced at a subsequent press conference that the tax on windfall profits would be used to lower the prices of gas, oil and coal for customers.

On Sunday, the government’s three political parties agreed on measures including a proposed extension of public transport discounts and tax breaks worth €1.7 billion (41.7 billion crowns) for 9,000 energy-intensive companies. “It’s the biggest of our three packages so far,” Scholz said at a press conference.

“The rapid rise in energy prices calls for prompt and appropriate assistance to citizens and businesses,” according to the AFP news agency, according to a government document. It also includes checks and increased housing allowances.

Inflation has been largely driven by higher energy prices and has not fallen due to energy uncertainties related to Russia’s invasion of Ukraine.

So the German government will use the incidental tax revenues to lower the price of gas, oil and coal for final consumers, Scholz announced.

According to the Chancellor, Germany will “get through this winter” and will be able to secure its energy supply despite the depletion of gas supplies in Russia, on which its economy heavily depends. Not the state (…) the federal government has been preparing for this possibility since the beginning of the year,” Scholz told reporters, adding that thanks to the diversification of supply sources and the replenishment of gas reserves, the state will be able to increase the number of nodes. Longer closures of the Stream 1 gas pipeline can be addressed.

Due to high energy prices and rising cost of living, Germany has already taken many measures, including lump sums, to help people. The most popular measures were the temporary reduction of fuel taxes and the introduction of monthly all-Germany tickets for local and city transport at €9 (CZK 220). Two reliefs ended at the end of August


Leave a Comment

Your email address will not be published.