To counter rising energy prices, the Association of Cities and Municipalities is calling for a temporary reduction in taxes, such as the value-added tax. André Berghegger, the Chief Executive Officer, told newspapers of the Funke Media Group (Sunday editions) that an “immediately effective and time-limited relief” is necessary for citizens, small and medium-sized enterprises, and tradespeople.
He proposed a noticeable reduction in taxes on energy and daily necessity goods for an initial period of six months. This measure, he stated, would lower energy costs and ease the burden on commuters, tradespeople, and the economy. Furthermore, Berghegger demanded a reduction in VAT for groceries and other essential goods. He argued that a temporary tax cut achieves quick results and should be preferred over other measures, such as a one-time payment.
Berghegger emphasized that non-bureaucratic measures are essential, rather than superficial fixes. Looking to the long term, he warned that overall efforts must focus on making Germany more resilient. This resilience should encompass defense capabilities, civil protection, favorable economic conditions, and the energy mix. While acknowledging the immediate need for temporary relief for citizens and businesses, Berghegger cautioned that it must also remain clear that the state’s capabilities are limited. He concluded, “No one should assume that the state can absorb all burdens and risks in every crisis situation”.
