Friday, September 7, 2012

Private Households Pay EUR 937 Million in VAT on EEG Surcharge

The EEG surcharge is Germany's method of recovering the cost of contracted power (feed-in tariffs).  The Left is a party currently polling in single digits.
It will be interesting to see if identifying the dual regressive mechanisms of shifting energy costs to households, and the VAT consumption tax, gains them support.

Private Households Pay EUR 937 Million in VAT on EEG Surcharge « German Energy Blog:
Private German households will pay EUR 937 million in value added tax in 2012 on the EEG surcharge that is part of the electricity bill, the German Finance Ministry told The Left Party upon an interpellation...
Katja Kipping, co-leader of The Left, demanded to return the VAT on the EEG surcharge to consumers. The money had to go into a fund for a social energy policy shift, she added, saying that her party wanted to introduce a scrapping bonus of EUR 100 for households that replace energy guzzling household appliances by more efficient ones and wanted to set aside money for hardship cases, in which households were behind on payments of the electricity bills.
Read the full blog post at the German Energy Blog

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