DIHK Urges Federal Government to Lower Electricity Tax for All Businesses, Citing Ecological Benefits
Economy / Finance

DIHK Urges Federal Government to Lower Electricity Tax for All Businesses, Citing Ecological Benefits

Peter Adrian, the President of the German Chamber of Industry and Commerce (DIHK), is urging the federal government to lower the electricity tax for all businesses down to the minimum European level. According to Adrian speaking to the Funk-Mediengruppe, the government must now honor its previous promises. He emphasized that relief is urgently needed not only by industry but also by trade, hospitality, and IT service providers due to high energy costs.

Adrian noted that electricity prices in Germany remain among the highest in Europe. He suggested that the expected tax revenues, coupled with income from CO2 pricing, provide ample financial resources to support this reduction. He cited specific examples of the impact: an average hotel could save around €10,000 annually, a shopping center around €200,000, and a large data center close to one million euros.

Furthermore, Adrian pointed out the environmental benefits of a lower tax. He argued that reduced electricity levies would strengthen investment in climate-friendly technologies, such as heat pumps and electric mobility. This, he claimed, would send a strong signal toward climate protection, boosting independence from fluctuations in international oil and gas markets.

However, a different perspective came from Michaela Engelmeier, chairperson of the Social Association Germany (SoVD). Speaking to the Funke-Mediengruppe, she also advocated for energy cost relief but cautioned against a blanket reduction for everyone, which she deemed too indiscriminate. Instead, she called for targeted aid aimed at people with low and medium incomes, as well as specific assistance for those struggling with soaring rental, food, and energy costs, thus preventing their risks of poverty from escalating.

Political pressure for wider reforms has been mounting. Ahead of the ministerial conference in Berlin, several state premiers demanded a rapid expansion of the electricity tax reduction. Hendrik Wüst, the Premier of North Rhine-Westphalia, called for relief for households, artisans, traders, and service companies. Similarly, Manuela Schwesig, Premier of Mecklenburg-Vorpommern, and Gordon Schnieder, the government head of Rhineland-Palatinate, referred to the promises made in the coalition agreement, with Schnieder suggesting January 1st as the desired implementation date.

While the coalition government did agree to lower the electricity tax for everyone to the EU minimum, currently, only the industrial sector, manufacturing, and agriculture are benefiting from this reduction.