German Economic Expert Criticizes Government’s Plan to Exempt Industry from Electricity Tax
German economic expert Veronika Grimm has expressed her disapproval of the government’s plan to only exempt the industry from the electricity tax. According to Grimm, the electricity tax should be abolished in its entirety, as agreed upon in the coalition contract, to benefit both businesses and citizens, making the electrification of the economy more attractive and reducing bureaucratic red tape.
Grimm also highlighted the importance of focusing on CO2 emissions, rather than electricity consumption, in the context of the country’s transition to a climate-neutral economy, a recommendation that has been made for a long time.
The government’s finance minister, Klingbeil, has proposed a budget that does not immediately implement the reduction of the electricity tax, as previously announced in the coalition contract, which would initially only bring the tax in line with the European minimum standard.