Fuel prices: ZDK demands permanent tax cut

The individual measures taken by the federal government are not a sustainable solution to relieve consumers of the burden of high fuel prices. Therefore, the ZDK (German Association of Motor Trades and Repairs) is calling for a permanent reduction in energy tax – ultimately to the EU minimum tax level.

The German Association of Motor Trades and Repairs (ZDK) welcomes the fuel rebate decided upon by the federal government , which has now also been passed by the Bundestag and Bundesrat. However, the association simultaneously calls for a "fundamental change of course regarding the state taxes and levies of around 60 percent on fuels." The system doesn't need another rebate, but rather a complete overhaul.

Government levies on fuels must be permanently reduced. However, a reform of government taxes must also provide incentives for switching to alternative fuels. The 14-cent reduction in the energy tax on fuels must be permanent, demands ZDK President Thomas Peckruhn. "The current national CO₂ price already fully closes this gap."

Reduce energy tax to EU minimum tax level

Germany is among the EU countries with the highest fuel prices. A major reason is the combination of energy tax, CO₂ pricing, and value-added tax. According to calculations by the German Association of Motor Trades and Repairs (ZDK), before the new fuel discount, these three items alone accounted for around 50 percent of the gasoline price and 42 percent of the diesel price.

The ZDK therefore reiterates its proposal to reduce the energy tax on fuels to the EU minimum tax level in the long term and to offset the additional burden from the already levied CO₂ price. This would link the relief to a reliable long-term price signal that would genuinely and effectively promote the switch to alternative fuels.

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Reorganizing burdens on mobility

"Mobility must not be burdened ever more heavily by overlapping taxes and levies. We need less government intervention and less overregulation – and at the same time, clear, reliable signals for the mobility transition," emphasizes Peckruhn. Reliable framework conditions are needed to enable affordable mobility and support the switch to alternative fuels.

It is now crucial to reorganize government levies on fuels and mobility and to reduce overregulation caused by overlapping burdens. This will provide lasting relief for consumers. "Policymakers should address the root causes of the high burden, namely excessive taxes and levies. Consumers and businesses need a reliable framework that will also hold up in the next crisis," said Peckruhn.

Source: ZDK

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