Policy status:In Force
Date Effective:1999
Policy Type:Economic Instruments>Fiscal/financial incentives
Policy Target:
Agency:Ministry of Economics and Labour
Description:In April 1999, Germany implemented the first step of its ecological tax reform, which includes higher taxes on energy in an attempt to reduce fossil fuel consumption. The taxes amount to increases of Pf6/liter for diesel and gasoline, Pf4/liter for heating oil, Pf0.32/kWh, and a new tax on electricity and for natural gas of Pf2/kWh. Next steps, approved by Parliament, resulted in further increases of gasoline and diesel prices by Pf0.6/litre and by Pf0.5/kWh for electricity per year over the period 2000 to 2003. Among the exemptions applying to the tax, the manufacturing industry pays only 20 per cent of the tax on electricity, heating oil and gas. Energy-intensive industries can also get reimbursed for any payment of the tax above 120 per cent of the savings they achieve through lower employers social contributions. Oil and gas for power generation in industry are not taxed.

Last modified: Mon, 02 Jul 2012 11:00:08 CEST