Federal Finance Minister Lars Klingbeil (SPD) praised the passing of the so-called “fuel discount”. Speaking in Berlin on Friday after the German Bundestag passed the measure, Klingbeil called it a “important signal” designed to alleviate the burden on citizens during the current crisis.
Beyond this immediate relief, Klingbeil also stated that Germany plans to continue assessing the implementation of a windfall tax in Brussels. He mentioned holding “constructive talks” with the European Commission, advocating for accountability for corporations that made excessive profits during times of crisis, noting that the windfall tax proved to be an effective measure already in 2022. He added that, despite significant internal disagreement within the federal government, this measure remains under consideration.
Furthermore, Klingbeil announced preparations for an income tax reform aimed at easing the financial pressure on small and medium-sized earners. He confirmed that a credible counter-financing mechanism is necessary, a goal to which the coalition has reportedly agreed. He assured the public that the resulting relief would be “noticeable” and emphasized that companies would be kept accountable for passing the reduction in fuel prices costs on to consumers.
According to the legislative amendment passed by the Bundestag, the tax on gasoline and diesel is set to be reduced by approximately 17 cents per liter, effective May 1st. This initial reduction is scheduled to last for a period of two months.