Federal Economics Minister Katherina Reiche (CDU) rejects fuel tax cuts despite high fuel prices. "We are not currently planning that," Reiche told the Augsburger Allgemeine (Saturday edition).
Referring to recently enacted tax cuts in Italy and Austria, Reiche added: "Prices at the pump in those countries haven't come down either. Much like the German fuel tax discount introduced in 2022 after Russia's attack on Ukraine, by the way."
To ease the burden on citizens, the minister said she favors other instruments instead. "One measure could be to temporarily raise the commuter tax allowance," Reiche told the Augsburger Allgemeine, adding: "That provides targeted relief to those who depend on their car.
We are also considering within the coalition reducing the electricity tax for private households. That doesn't help at the pump, but it does help lower households' overall energy bills."
Reiche is, however, skeptical about cutting vehicle tax. The minister said: "In my view, the effect of a temporary reduction in vehicle tax is too non-specific. It would also benefit those who can afford the high prices due to their large income, or those who don't use their car to commute to work."
Relief measures must be "targeted and time-limited," she said.
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