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Germany to introduce tax relief to ease energy crisis effects

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Germany to introduce tax relief to ease energy crisis effects

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  • Germany will offer tax breaks for low-income families and people struggling to pay energy bills.
  • Chancellor Olaf Scholz announced in July that German households would face higher gas prices in the fall.
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  • Germany’s finance ministry revealed a proposal to lower income taxes on Wednesday.

 

As Russia’s war in Ukraine continues, Germany will launch a new package of measures to help citizens cope with the effects of the energy crisis.

This includes tax breaks for low-income families and people struggling to pay their energy bills, German Chancellor Olaf Scholz announced on Thursday.

“Citizens can count on us not to abandon them,” Scholz told journalists at a news conference in Berlin.

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In response to rising living costs, Germany’s finance ministry revealed a proposal to lower income taxes on Wednesday. Finance Minister Christian Lindner predicted that the tax changes would benefit approximately 48 million Germans.

The proposal comes after Chancellor Scholz announced in July that German households would face higher gas prices in the fall as a result of a gas standoff with Russia.

Scholz also stated on Thursday that Germany is determined to deal with an energy crisis in the coming winter in solidarity with its European partners.

“I believe that as the biggest country with the greatest economy and the largest population at the center of Europe, we have a special task,” Scholz said. “We are the ones that have to do their share so that progress and sustainability come to pass in Europe. This is something that I commit to.”

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