A dramatic jump in gas prices awaits German citizens

According to the international group Tasnim news agency, the German magazine Focus wrote in an article: As a result of the mutation After Russia’s war with Ukraine, a reduction in VAT rates has been applied to gas deliveries in Germany since October 2022, ending at the end of March. Consumers are now affected by these conditions.

This report further states: In this way, consumers should prepare themselves for the increase in gas prices from April. The temporary VAT reduction plan expires at the end of March. Torsten Sturk, energy expert at comparison portal Verivox, said: “The full VAT rate will suddenly increase the price of gas by 11%.” Stephan Söttner, managing director of energy at comparison portal Check24, also said that the increase in VAT from seven to 19% will significantly increase energy costs for consumers from April.

In order to reduce the high energy prices as a result of the war between Russia and Ukraine, German politicians and officials decided to reduce the value added tax on the delivery of natural gas and district heating. From October 2022, the VAT rate will be reduced to 7%. French Finance Minister Christian Lindner explained this tax cut at the time by saying that gas prices are still rising and the government should not profit from the fact that life is becoming more expensive for people.

This action of First, it was limited until March 31, 2024. A growth law passed by the German parliament then stipulated that the VAT cut should expire at the end of February – as the “crisis-related price spike” in gas markets had now subsided. After a mediation process between the Bundestag and the Bundesrat on the law, it was decided that the VAT cut would not expire until the end of March. He said: “Temporary reduction of gas and heat value added tax was an important tool during the energy crisis to relieve consumers.” As a result, an average household, for example, with the annual consumption of 20,000 kilowatt hours of gas, would save about 550 euros. It has decreased significantly in energy markets. Energy costs, both electricity and gas, have fallen significantly below peak times during the first year of Russia’s war against Ukraine. The prices of private households who signed a new contract for electricity or gas in the second half of 2023 are also lower than in the second half of 2021.

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