Habeck rejects reductions in electricity and VAT

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Robert Habeck, Federal Minister for Economic Affairs and Climate Protection. © Kay Nietfeld/dpa

Robert Habeck rejects a flat-rate tax cut. The Economics Minister is concerned with more targeted support.

Berlin – Economics Minister Robert Habeck (Greens) has rejected calls for a reduction in electricity tax and value added tax on energy.

“An immediate children’s surcharge that goes to families who have to turn over every cent is much more targeted than a flat-rate tax cut from which the rich also benefit,” he told the newspapers of the Funke media group.

“Apart from that, a government is obliged to present a balanced budget – and such a tax cut is difficult to get rid of.” He also rejected a temporary reduction in VAT: “If you then increase VAT again, it will logically be more expensive and you risks fueling inflation.”

“The high prices put pressure on people who earn very little,” Habeck admitted. Therefore, the cabinet has already decided on a heating subsidy for people with low incomes.

On Wednesday, the cabinet had decided on plans by Building Minister Klara Geywitz (SPD), according to which low-income households and many students and trainees should receive a subsidy for heating costs in summer. dpa


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