The Association of Taxpayers (Bund der Steuerzahler, BdSt) is urging the German federal government to change the way value‑added tax is applied to gasoline. They argue that VAT should be charged only on the net price of fuel and not on the CO₂ fee that is added to the final cost.
“Tax on top of tax is unacceptable” said BdSt president Reiner Holznagel to the newspaper “Bild”. He described the practice as a double taxation that the state should avoid, especially since gasoline already faces the highest consumer pressure. Presently, the 19 % VAT is levied on the full bill of sale, which includes the CO₂ surcharge. This results in each litre costing roughly 2.5 cents more than it would if VAT were applied only to the base price.
Holznagel added that removing the double taxation is “tax‑systemically warranted and not a subsidy”. He said the change would provide a quick and sensible relief for consumers, easing the price of gasoline.