State makes sizeable profit from private power consumption – taxpayers’ federation

Private households in Germany paid more than 10 billion euros in taxes and levies on power consumption to the state in 2017, the German Taxpayer Institute (DSi) of the German Taxpayers Federation (BdSt) says in an analysis seen by the Clean Energy Wire. These calculations include the electricity tax, concession fees and turnover tax, but not the renewables surcharge. Together, they make up 28 percent of an average household’s power bill. As the turnover tax even needs to be paid on other taxes and levies, it could be considered a “tax on the tax”, DSi says. The turnover tax private households paid on the renewables surcharge alone amounted to 1.6 billion euros in 2017. The taxpayers’ federation is calling for a reform of the turnover and power taxes, for example a reduced VAT rate on electricity.

For background, read the CLEW factsheets What German households pay for power and Germany ponders how to finance renewables expansion in the future.