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Germany Limits Electricity Tax Cut to Manufacturing and Agriculture

Berlin restricts the relief to industry, agriculture, citing budget limits for households

Overview

  • Federal government reverses its coalition pledge and will cut electricity tax only for manufacturing and agriculture firms.
  • Hesse's Minister President Boris Rhein demands a clear timetable for extending relief to all consumers by 2027 and proposes funding the cuts through reduced social spending.
  • Industry bodies Handelsverband Deutschland and Groß- und Außenhandelsverband (BGA) accuse the coalition of breaking its promise and warn of diminishing credibility.
  • Finance Minister Lars Klingbeil emphasizes that all tax relief measures remain under financing reservations and that resources for households and SMEs are lacking.
  • CSU leader Markus Söder calls the targeted cut a first step and outlines plans for universal electricity tax relief by 2027.