(de-news.net) – The German Federal Government has refined the eligibility criteria for a proposed reduction in electricity taxation, aiming to implement a previously announced fiscal relief measure. According to a spokesperson for the Federal Ministry of Finance, the measure is designed to encompass the entire operational energy consumption of the manufacturing sector, irrespective of enterprise size or power intensity. The principal qualifying conditions require an annual electricity consumption exceeding 12.5 megawatt-hours or an accrued electricity tax liability of at least 250 euros. These intentionally modest thresholds are conceived to ensure the inclusion of small and medium-sized enterprises (SMEs), including artisanal trades such as metalworking and baking. Government spokesperson Stefan Kornelius estimated that the policy could potentially benefit approximately 600,000 enterprises.
Concurrently, parliamentary leaders of the Christian Democratic Union (CDU) and the Christian Social Union (CSU) have advocated for a broader extension of the tax abatement initiative. As documented in a unanimously adopted resolution issued in Bad Dürkheim, the existing policy framework was characterized as a preliminary step. The resolution underscored the imperative of instituting additional legislative measures within the current legislative period, contingent upon the availability of fiscal latitude. Jens Spahn, the CDU’s Bundestag faction leader, endorsed the proposal, positing that a comprehensive reduction could simultaneously advance household and SME welfare and facilitate the equitable redistribution of revenues generated via CO2 pricing. CDU politician Manuel Hagel further recommended the prompt articulation of a comprehensive implementation strategy, ideally accompanied by a definitive timeline.
Despite these assertions, CDU deputy leader Sepp Müller tempered expectations concerning expedited tax relief for private households. Citing an estimated annual fiscal impact of 6 billion euros, he emphasized the need for budgetary rigor over expedience. He referenced pre-existing consumer relief measures, including adjustments to gas storage levies and network charges, and proposed an expedited timeline for implementing reductions for energy-intensive sectors.
In response, Alexander Schweitzer, Minister-President of Rhineland-Palatinate and deputy chair of the Social Democratic Party (SPD), expressed marked disapproval of the CDU’s caution. He contended that the industry-focused tax relief had been a product of coordinated negotiation between the Chancellor’s Office and key federal ministries, and emphasized that the CDU-affiliated Chancellor had endorsed the accord. He concluded that following the release of Federal Finance Minister Lars Klingbeil’s budget—which excluded private consumers from immediate relief—internal incoherence within the Union’s ranks had become manifest. Despite this, Linnemann has continued to advocate for a universal application of the electricity tax reduction.
