The federal government appears to be working on a direct relief measure to address steep fuel prices. According to the “Handelsblatt”, citing government sources, officials are examining whether the vehicle tax could be lowered for car drivers, given the high costs of gasoline and diesel.
The issue is that a reduction in the vehicle tax would largely benefit owners of large cars, and the tax is paid only once a year. To offset this, the proposal is to provide car owners with a lump‑sum payout as a bonus for a lower tax rate. This would use a new “direct payment mechanism” that, for the first time in German history, would link citizens’ private bank accounts directly with the state.
The “tricolour” coalition originally introduced the mechanism to distribute revenue from CO₂ pricing-what they called “climate money”-back to the populace. Although this did not materialise, insiders report that the direct payment mechanism is now ready and could be employed for the vehicle tax. Politically, however, the decision to use it remains pending.
