Relief package 3: What’s in store for drivers after the tank discount?

This relief is available for motorists

The actually good news in the relief package is that a bad one has been postponed by a year. Actually, at the beginning of 2023, the next increase in CO₂-Tax should take effect. She would have the CO₂-Price for petrol to 9.8 euro cents per liter (+ 1.4 cents) and for diesel to 11 cents (+ 1.5 cents). This increase is now being postponed to 2024, and the further increases planned for subsequent years are also by one year each.

Will the electricity price for e-car charging be capped?

According to the traffic light plans, private households should receive the amount of electricity for basic consumption at a discounted price. This should also apply to small and medium-sized companies with utility tariffs.

What does the successor to the 9-euro ticket look like?

It’s still unclear: Most of the suggestions at the traffic light summit relate to the price of a future monthly ticket: the suggestions range from 49 to 69 euros. The federal SPD, for example, has brought a nationwide 49-euro ticket into play, and the Greens want to add a regional monthly ticket for 29 euros. The Association of German Transport Companies (VDV), in turn, had spoken out in favor of a 69-euro ticket. In the end, the decisive factor will be the financing, which the federal and state governments are fiercely fighting over, because the traffic light has demanded a state subsidy of the same amount as a prerequisite for a federal subsidy.

How long was the tank discount?

The tank discount in Germany was effective for three months from June 1, 2022 to August 31. As part of the relief package, the energy tax on fuels was reduced as much as allowed by the EU. The tax rate for petrol was reduced by 29.55 cents per liter and for diesel by 14.04 cents. Since less VAT was also payable, the total savings were 35.2 cents (super) and 16.7 cents (diesel) per liter of fuel.

Has the tank discount been passed on in full?

It is controversial whether fuel customers benefited fully from the energy tax cut in the three months after June 1, 2022. The ADAC considered the fuel prices to be too high compared to the oil tariff and thus indirectly expressed doubts.

According to the new petrol price index from the Essen economic research institute RWI, the tank discount was essentially passed on to customers by dealers and petrol station operators. However, the lowering of the energy tax on fuels at the pumps has recently had hardly any noticeable effect. According to the information, the drought and the associated low level of the Rhine were among the price drivers. This causes high transport costs, especially for diesel, and thus rising prices.

Gas stations in Germany have experienced price fluctuations of unprecedented proportions in recent months.

According to RWI, the tank discount helped the wealthy more than poor households, which often had no car at all. On the other hand, he did not encourage people to use less petrol and diesel. In June, scientists from the renowned Munich Ifo Institute argued similarly, who had also analyzed that the tax cut would be passed on almost completely.

Where did the tank discount come from?

At the end of April 2022, the federal cabinet launched the second billion-euro relief package, which was intended to cushion the energy costs, which had risen sharply as a result of the Ukraine war. It also includes an energy price flat rate, a Hartz IV surcharge and a children’s bonus – and the 9-euro ticket for all local and regional transport, the successor regulation of which is even more hotly disputed than the tank discount.

This is what the energy price flat rate looks like

Many motorists benefit indirectly from another measure: all employees and self-employed persons receive a one-off payment of 300 euros as an energy price flat rate. This support must be taxed as additional income. Payment is scheduled for September 2022. Freelancers receive a reduction on the income tax prepayment.

How high are the child bonus and the Hartz IV bonus?

Families also received a one-off child bonus of EUR 100 in July as a surcharge on child benefit. And there is also a so-called Hartz IV bonus. This was raised from 100 to 200 euros due to the further rise in energy and consumer prices.

What the tax cut cost the state

All measures from the energy flat rate, 9-euro ticket, family subsidy and the reduction in energy tax will have a total of 17 billion euros in the federal budget this year.

Finance Minister Lindner (FDP) had initiated tax relief for petrol and diesel.

That’s what’s left of the after-tax help

After taxation, different low amounts of the energy cost subsidy of 300 euros remain in your wallet. Here are some recent calculations from the Taxpayers’ Association:

Single household with top earners: According to these calculations, a single person with tax class 1 and an annual salary of EUR 72,000 receives exactly EUR 181.80 in energy cost allowance. At the current fuel price, this would roughly calculate the purchase of 83.6 liters of diesel or 88.4 liters of premium E10 enable – a little more than a tankful of fuel.

The prices at the gas stations had recovered in the meantime – but what happens after the tank discount?

Family with top earners: The same employee, but married and with one child, falls into tax class 4 and receives 184.34 euros from the energy price flat rate.

Average and low-income families: Anyone who earns an annual salary of EUR 45,000 under the same conditions will receive an energy subsidy of EUR 216.33. With an annual salary of 15,000 euros, it is already 248.83 euros.

Low earners: De facto, only those who earn less than 10,000 euros per year receive the full amount. This is already very close to the subsistence level, which is currently set at 9408 euros for single people in terms of tax law.

According to estimates by the German Economic Institute, families with a gross household income of 35,000 euros per year are the biggest beneficiaries of the package of measures.

With material from Reuters, dpa, afp