Berlin Fuel discount, child bonus of 100 euros, wage subsidy of 300 euros – the traffic light is still struggling to implement its second relief package for citizens and businesses. The relief is set to apply from June 1, but consumers have been suffering from steep price hikes for some time.
The Traffic Light Coalition had been negotiating a second relief package for citizens and businesses for ten hours due to still high energy prices, until they were finally able to present a deal on March 23 . The SPD, the Greens and the FDP are once again taking their time to implement the resolutions: the package will only arrive in the cabinet on April 27 with the amending budget, the financing of which is planned by Finance Minister Christian Lindner (FDP) . According to Lindner, the package will weigh on the budget by around 17 billion euros.
Resolutions require multiple bills from different departments. They are presented to coalition factions as drafting aids to expedite the subsequent legislative process. The start date for almost all relief should be June 1. However, many details are still “being coordinated” within the government, as it was said on Tuesday. Next week there should be the final rounds of voting. Here are the elements of the package of measures:
energy tax reduction The traffic light wants to ensure lower fuel prices by reducing the energy tax on fuels to the European minimum for a limited period of three months from June 1. It’s 30 cents a liter for gasoline and 14 cents for diesel, Lindner calculated. “The temporary reduction in tax rates for diesel, gasoline, natural gas and liquid gas and their tax equivalents will lead to a reduction in tax revenue for the federal budget of 3.15 billion euros,” says Lindner’s bill. The government wants the tax reduction to be fully passed on from suppliers to end users. The Federal Cartel Office is therefore now taking a close interest in refineries, as the authority announced on Tuesday: fuel prices had fallen significantly less than the price of oil, which suggests that companies are taking a lot of profits. There is also criticism of the lowering of taxes within the coalition for reasons of climate protection. Driven by high energy prices, Germany’s inflation rate soared to 7.3% in March from a year earlier, as confirmed by the Federal Statistical Office.
energy package Any employee subject to income tax should receive a single lump sum of 300 euros gross. The money is paid by the employer in the form of a wage subsidy and the tax installment is reduced for the self-employed. Capital is subject to income tax. The government has yet to specify whether retirees or people with a tax-exempt mini-job should also benefit from it.
Nine euro banknote A nine euro per month ticket in local public transport is to be offered nationwide for 90 days – probably also from June 1. The federal government wants to make the money available to the states, the costs are estimated at around 2.5 billion euros. The ticket must also allow domestic journeys on regional railway trains. For subscription subscribers, there could be a credit note or a refund of the difference between the price of their subscription and the nine-euro ticket. Details are still open here. The discount should also apply to work orders and semester tickets. The ticket must be bookable online, through ticket machines and service centers.
The Pro Bahn passenger association warned of the problems. “The €9 ticket is a good attempt by the federal government to do something for local public transport,” Pro Bahn spokesman Karl-Peter Naumann told our editorial team. “However, there are several issues with the implementation that need to be addressed first. We expect overcrowded trains on routes popular with tourists. More trains must be ordered for this,” he demanded. “Too bad the ticket is only valid for regional traffic. Long-distance commuters get nothing, although they also suffer massively from high fuel costs,” says Naumann. It is also important that the range of rail links and facilities improve after the term. “Only then will people stay permanently with the train as an alternative to the car,” Naumann said.
Further negotiations are currently underway between the Federal Government and the State Governments regarding a financial package which, in addition to the low cost ticket, also includes other cost elements, such as compensation for business costs. transportation due to rising energy prices.
gas heaters From 2024, a year earlier than planned, only new heating systems running on 65% renewable energy are to be installed. The framework must also be created so that homeowners can replace their heating systems that are over 20 years old. In addition, a major offensive on heat pumps financed by the State will be launched. From 2023, the EH 55 efficiency standard will also apply in residential construction.
child bonus In addition to family allowances, families must receive a single payment of 100 euros per child from the Family Allowance Fund. The premium is deducted from the child allowance, so it is more important for families with little money.
Social Protection Anyone who receives social benefits – for example as a recipient of Hartz IV – should receive another one-off payment of 100 euros in addition to the already decided subsidy of 100 euros. From January, the standard requirements should then be increased appropriately in view of the price increases.