Metallurgy / Chemicals / Rubber & Plastics

German Finance Minister Lindner said on the 14th local time that Germany wants to exempt the value-added tax from the natural gas surcharge, but this requires EU approval. Now, the German government has sent a letter to the European Commission requesting an exemption. Lindner wrote in a letter to EU finance commissioner Gentiloni that "state-imposed value added tax is driving up prices and is encountering growing resistance from the population, especially in the current exceptional circumstances."

Earlier, German Deputy Chancellor and Minister of Economy and Climate Protection Habeck also said that he hoped to exempt the value-added tax from the natural gas surcharge, but this is not in line with current EU law. So Lindner asked Gentiloni to exercise the power to push for the relevant VAT exemption.

German gas supply has been severely constrained since mid-June, and German gas importers have had to incur high additional costs, which will lead to significant losses and put companies at risk of bankruptcy. Lindner said rising energy prices posed a threat to Germany's stability. Therefore, the German government will impose a natural gas surcharge from October 1, the specific amount will be announced on August 15, and it is planned to be implemented until April 1, 2023.

According to German media analysis, a family of four may have to pay an additional 1,000 euros.