The flat-rate energy price of 300 euros will be removed from the tax burden of the public.
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| Fuel price in Germany : Coalition Relief Package |
As a result of the rising cost of electricity, the coalition has agreed to take the following steps: The flat-rate energy price of 300 euros will be removed from the tax burden of the public. Public transportation has a nine-euro ticket, and gasoline costs will be decreased. As a result of the steep spike in energy and fuel costs, the traffic light coalition in Germany is providing a wide range of assistance to individuals. A lump sum payment, a three-month decrease in the energy tax on gasoline, and assistance for families and low-income workers are among the proposals. In Berlin, the leaders of the SPD, Greens, and FDP made this announcement. There are also plans for reduced bus and rail fares in the local public transportation system, as well as more energy efficient measures. Unbureaucratically and fairly, the "middle" of society should be alleviated, it stated. As a result, a flat tariff for energy costs should be implemented: As a practical matter, this implies that all workers who pay income tax will get a one-time energy price flat rate of 300 euros as a bonus. This should be subject to some kind of tax. When he announced the figures, Finance Minister Christian Lindner referred to a "special tax surcharge."
For the next three months, the European minimum energy tax on fuels will be decreased to ease the burden on commuters and businesses. There was an agreement among other things, according to Lindner, to cut the price for a limited period of three months, for example by 30 cents per litre for gasoline and 14 cents for diesel. Each kid will receive a one-time bonus of 100 euros in addition to the child benefit, which will be sent to the family benefits office as soon as practicable. The bonus is deducted from the child benefit. An additional EUR 100 per person will be added to the current one-time payment of EUR 100 for beneficiaries of social benefits.
A nine-euro-a-month ticket for 90 days of local public transportation is also on the table from the coalition. The monies required for this should be allocated to the various states.
The alliance also wants to "delay" the closure of coal-fired power facilities in order to ensure energy security while cutting gas use. Coal-fired power stations should be kept on standby for as long as feasible in order to minimise gas use in power production in the near run, according to a findings paper. As a result, the Federal Network Agency has the authority to "halt until further notice" the decommissioning of coal-fired power facilities. The coalition, on the other hand, is committed to eliminating coal use "preferably by 2030."
Energy-saving measures were also part of the agreement reached by the coalition members. As a result of Russia's aggression against Ukraine, we should be able to lessen our reliance on Russian gas, oil, and coal. Every new heating system must be powered by at least 65 percent renewable energy by 2024, as previously agreed upon in the coalition agreement. Property owners will be able to replace heating systems that are more than two decades old thanks to the framework that is being developed. A big heat pump attack will also be undertaken. Environmentalist Ricarda Lang advocated for gas-free heating.
On the basis of these significant price rises, the coalition leaders have agreed that we need to safeguard people and the economy for a short time and for a limited duration," Lindner stated of the coalition leaders' agreement on the plan. Lang, the Green Party's leader, said that the measures included all segments of society. What comes next, however, is unknown, and it seems probable that not all of the burdens will be taken on. the relief package is a contribution to Germany's social cohesion and stability," said SPD chairman Lars Klingbeil. this administration is focused on the interests of people."
After months of negotiations, the alliance had agreed on an initial tranche of aid before the conflict in Ukraine broke out. This included, among other things, the removal of the billion-dollar EEG tax from July onwards. In the past, this was scheduled to happen in the first half of 2023. Long-distance commuters received an additional commuter stipend as part of the package.