Tradesmen Demand Diesel Tax Break Amid Oil Crisis

Tradesmen Demand Diesel Tax Break Amid Oil Crisis

Jörg Dittrich, President of the Central Association of German Crafts, has called for tax relief on diesel fuel used for commercial purposes.Speaking to the news portal “T-Online” on Tuesday, Dittrich advocated for a “commercial diesel” subsidy modeled after the existing system for agricultural diesel.

He stated that such a measure would allow businesses to receive partial tax exemptions on diesel, similar to the provisions in the agricultural sector. Dittrich emphasized the urgency of the plea, arguing that maintaining the economic core is critical during the current strained economic climate. He cautioned that the economy’s resilience is finite, noting that its “immune system against crises is depleted”.

The background for these demands is the significant surge in energy and fuel prices following the Iran conflict. Dittrich described the current energy price shock as “worse this time than the crisis in Ukraine” asserting that it is impacting every sector. He warned that tradespeople face “considerable cost increases” whether related to logistics expenses or raw material costs within supply chains. Many businesses are highly reliant on vans, machinery, and daily trips to client sites.

As a reference model, Dittrich pointed to agricultural diesel, where the energy tax on diesel is partially reimbursed retroactively upon application. From the perspective of the trades, a similar system could alleviate the burden on businesses with high mileage requirements. Dittrich added that companies are already reacting to the higher costs immediately. He noted, “No one is waiting anymore; all businesses are reacting immediately, withdrawing bids, or canceling orders” and therefore urged the government to examine relief measures for “commercially used diesel”.