Germany urged to cut electricity tax to EU minimum by 2025
The Association of Local Public Utilities (VKU) has called on the federal government to slash the electricity tax to the lowest level allowed in Europe. This move aims to ease financial pressure on households and small businesses from next year onwards. The proposal comes as energy costs remain a major concern for many consumers. Currently, the electricity tax stands at 2.05 cents per kilowatt-hour. The VKU wants this reduced to just 0.1 cents—the minimum rate permitted under EU rules. Such a cut would significantly lower bills for millions of customers.
The association argues that the government now has room in the budget to make this change. This follows the expected end of the relief bonus scheme, which previously helped offset high energy prices. The VKU believes the saved funds should instead go towards a permanent tax reduction. Small and medium-sized businesses, in particular, would benefit from the proposed change. The VKU has stressed that lower electricity costs would help these companies stay competitive while giving households much-needed financial breathing space.
If approved, the tax reduction would take effect in 2025. The VKU’s plan would bring Germany in line with the lowest electricity tax rates in Europe. This could lead to long-term savings for both consumers and businesses across the country.
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