Article Author:
Associated Press
BERLIN (AP) — Chancellor Olaf Scholz Germany said Thursday it will temporarily cut natural gas taxes to ease financial pressure on those whose fuel costs are soaring from Russia's war in Ukraine.
The announcement at a hastily called press conference in Berlin came a day after Scholz met with hostile protests during a town hall event on the outskirts of the capital.
Mr Scholz said the government has decided to reduce the value-added tax on gas from his 19% to 7% by the end of March 2024.
"Rising gas prices will hit many citizens," Scholz said, adding that further measures would be announced in the coming weeks.
In addition to rising wholesale natural gas prices caused by Russia's invasion of Ukraine earlier this year, consumers are scrambled to find new sources of supply in global markets by energy companies. will have to pay new surcharges to support
Russia has cut supplies to Germany and other European countries of natural gas, which is used to generate electricity, run factories and heat in the winter, and as the weather turns colder and demand increases, Further cuts are feared.The resulting high prices are fueling inflation, reducing people's purchasing power and increasing the likelihood of a recession.
Mr Scholz said that lower taxes on gas purchases in general would more than make up for the new surcharges, which would effectively be paid out of government coffers.
The German leader said the issue was "a matter of justice to ensure the country remains united during this crisis."
Scholz faced angry chants from protesters late Wednesday during a town hall event in the town of Neuruppin, about 50 kilometers (31 miles) northwest of the capital.
Videos show hundreds of people standing outside the security fence surrounding his event, yelling 'traitor' and 'blow it up'.
German news agency dpa reported that the protesters were organized by the far-right Alternative for Germany and the Left Party.
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