Before the parliamentary vote on the proposed reduction of the energy tax for the months of May and June, several economists and social groups have voiced strong criticisms of the measure.
Tomaso Duso, the Chairman of the Monopolkommission, argued that the tax cut represents the wrong instrument. Speaking to the “Rheinische Post” (Friday edition), Duso warned that in a situation of limited resources, price signals must be preserved. He stated that dampening these signals significantly weakens the strongest incentive for energy conservation.
Further criticizing the plan, Duso highlighted that since high-income households are likely to drive significantly more than low-income households, the relief package would “by all accounts benefit those who need it least”. He suggested that if financial aid is necessary, it should be highly targeted and constructive, such as direct payments to lower-income households, which would be a more precise method and would not distort crucial price signals.
Similarly, the social association VdK believes that alternative relief measures would be more sensible. According to the association’s head, Verena Bentele, it is highly doubtful whether the planned 17-cent per liter reduction in the energy tax will effectively reach the people. She argued that instead of investing billions in short-term measures, a more sustainable and equitable solution would be to increase accessible and reliable local public transport combined with a permanently affordable Deutschlandticket and a social ticket.
The coalition government intends to cut the energy tax on gasoline and diesel by 17 cents per liter for the two months, a decision requiring votes in both the Bundestag and the Bundesrat on Friday.
