Germany has unveiled plans to cut tax on natural gas sales to soften the blow of soaring energy costs for many households by offsetting the impact of a new gas levy that starts in October.
Chancellor Olaf Scholz announced the cut in value added tax on gas sales from 19 per cent to 7 per cent on Thursday, telling reporters that more measures would be announced in the coming weeks to deal with Germany’s mounting energy crisis.
“The question of justice is crucial for the country to stick together in this crisis,” Scholz said, adding that gas suppliers should pass on the tax cut in full to their customers. “You’ll never walk alone,” he said, repeating his often-used mantra.
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