“Federal government decides reform of energy and electricity tax laws”

The federal cabinet approved reform drafts for the energy and electricity tax laws to adapt regulation on national tax exemptions to EU state aid law, the finance ministry writes in a press release. The draft would extend tax exemptions for natural gas fuels (CNG/LNG) until 2026, but phase out exemptions for liquefied petroleum gas (LPG). Tax exemptions for power from small-scale facilities and from renewable sources remain in place.
Stefan Kapferer, head of German utility association BDEW, welcomed the cabinet decision in a separate press release: “The tedious discussions paid off: The federal government will not impose unnecessary tax increases. This is especially true for tax exemptions for small power generation facilities, as well as power from renewable sources.”

Find the press release in German here and the draft in German here. Find the BDEW press release in German here.

For background read the CLEW factsheets What German households pay for power and The role of biofuel and hydrogen in Germany's transport Energiewende.