Thorsten Frei, the chief parliamentary group leader for the CDU, has advocated for a temporary reduction in the value-added tax (VAT) on fuel to alleviate the burden on drivers. Speaking to RTL and ntv, Frei stated that the state is currently benefiting from the rise in crude oil and sales prices because a higher VAT is being added on top of these increases. He views reducing the VAT from 19 percent to 7 percent as a straightforward response to give some of those gains back to the consumers. The CDU politician believes that this measure would not require counter-funding, since the state would merely be returning additional VAT revenue to the taxpayers.
According to Frei, another available option for relief is to reissue the fuel discount scheme (Tankrabatt). While acknowledging this is simply one possible choice, he emphasized that given the expectation that the situation in the Middle East will not improve quickly, action must be taken on prices.
Frei urged that prices be lowered quickly, insisting that deliberation should currently focus on implementing immediate measures by October 1st. He pointed out that similar success was achieved in a short timeframe during the spring when the fuel discount was active. He stressed, “People don’t need the prospect of relief now; they need relief-and therefore, we have to push the accelerator.” He concluded by demanding that the federal government commit to specific measures “very, very quickly.”
