Federal Minister Robert Habeck has welcomed the announcement that the value-added tax (VAT) on gas will be temporarily reduced.
He said: "It has always been clear that we do not intend to impose additional burdens on people through the VAT on the gas levies. As a direct tax exemption is not possible in accordance with European law, it is only logical to temporarily reduce the VAT on gas. To make it as easy as possible and waste no additional time, it makes sense to make use of the existing VAT rate of seven percent so that consumers can quickly benefit from this reduction. It will also compensate for other costs which are incurred in view of higher levies. I expect companies to fully pass this reduction on to customers.

The reduction of the VAT on gas is only one step, especially to prevent additional burdens. It is clear that there will be a third relief package to reduce the great pressure on many people and enterprises. The lower the income, the higher this pressure is. This is why targeted support is so important. In this crisis, the question of social justice has taken on a new dimension and requires a strong answer.

Some businesses are also heavily affected by the consequences of the energy crisis, especially small and medium-sized enterprises. It is important that targeted support is given to these companies. We will therefore extend the assistance programmes and adapt them where necessary, depending on the situation."