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14 Jun 2022, 12:07
Julian Wettengel

Fuel tax cut ā€œmessā€ a ā€œlow point in German politicsā€ – media commentaries

Tagesspiegel Background / FAZ / Āé¶¹ĪŽĀė°ę

German newspapers call the government’s decision to cut energy taxes on fuels for three months to soften the impact of rising prices a ā€œā€ and ā€œā€. The commentaries follow economy ministerĀ Robert Habeck’s statement that he aimed to tighten the country’s antitrust lawĀ amid concerns that oil companies do not pass on a tax cut on fuels to consumers. The ifo ±õ²Ō²õ³Ł¾±³Ł³Ü³Ł±šĢżĀ according to which oil companies passed on 85 percent (petrol) to 100 percent (diesel) of the discount.

Whether every cent of the discount is passed on in Germany can rightly be doubted, but for the most part the fuel rebate reaches consumers,Ā . Still, lowering the tax was short-sighted and wrong from the start, as the incentive to save fuel decreases, the carbon footprint increases, and it has been proven that wealthy households benefit disproportionately, Schlandt writes. ā€œWhen short-sighted patronage politics and anti-market populism complement each other, the result is a low point in German politics.ā€

The discount is a ā€œbillion-euro gift to car drivers pushed through by the FDP against all ecological sense,ā€Ā . Minister Habeck’s proposal to tighten antitrust law was first and foremost a threat. ā€œIt is rather doubtful that the mineral oil companies will be impressed in the short term,ā€ he writes.

The fuel discount has been contentiousĀ from the start, and many researchers and NGOs have voiced their opposition for various reasons. It wouldĀ encourage greater use of fossil fuels, isĀ targeted at mid to high-income consumersĢż²¹²Ō»åĢżenables oil companies to make windfall profits.

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