# Germany to lower sales tax on gas to 7% in bid to relieve consumers
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-18
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Germany cuts gas sales tax to 7% to ease energy price surge
Meta Description: Chancellor Olaf Scholz announces reduced tax rate to cushion impact of rising energy costs on consumers. Measures in place to support importers cope with price
URL: https://financedigest.com/germany-to-lower-sales-tax-on-gas-to-7-in-bid-to-relieve-consumershtml

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BERLIN (Reuters) – Germany will lower the sales tax on gas to 7% in an effort to cushion the blow of additional charges being placed on consumers to ensure energy companies can afford increasingly expensive supplies, said Chancellor Olaf Scholz on Thursday.

The reduced tax rate will apply as long as the levy is charged, meaning through March 2024, added Scholz.

Germany had been in talks with the European Commission this week to find another way to reduce the cost burden on consumers after the commission had said Germany’s bid for an exemption on value-added tax was not possible.

The measure comes after [levies were announced this week that will tack on hundreds of euros to an average family’s energy](https://www.financedigest.com/eu-will-propose-windfall-levies-on-energy-firms-von-der-leyen-says.html "EU will propose windfall levies on energy firms, von der Leyen says") bill.

The levies will be imposed from Oct. 1 in a bid to help Uniper – the country’s largest importer of Russian gas – and other importers [cope with soaring prices](https://www.financedigest.com/france-leans-on-retailers-to-help-consumers-cope-with-food-prices.html "France leans on retailers to help consumers cope with food prices").

(Writing by Miranda Murray, editing by Rachel More)


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