German Parliament Approves Fuel Tax Discount to Ease Soaring Prices
Parliamentary Approval and Details of the Fuel Tax Discount
By Maria Martinez
Legislative Process and Approval
BERLIN, Sept 25 (Reuters) - Germany's lower house of parliament approved on Friday the second temporary gasoline tax discount this year, which will cost federal and state governments €2.5 billion ($2.85 billion).
Next Steps in the Upper House
Following approval by the lower house, the upper house of parliament -wherethe states are represented - is expected to also pass the fuel price discount later on Friday.
Details of the Tax Cut
Scope and Duration
The government will cut taxes on gasoline and diesel by €0.17 ($0.20) per litre from the beginning of October until the end of December to help citizens deal with fuel prices sent soaring by the Iran war.
Context: Ongoing Middle East Conflict
As the Middle East conflict shows no signs of easing, the German government has been forced to revive relief measures for consumers and companies after temporary moves earlier this year, trying to contain public discontent and the rise of the far-right.
Previous Fuel Tax Discount Measures
April Approval and Impact
Germany approved in April a fuel tax discount for May and June to cushion the impact of higher petrol prices which cost €1.6 billion and, during the two months it was in effect, inflation eased.
Exchange Rate Information
($1 = 0.8777 euros)
(Reporting by Maria Martinez and Christian KraemerEditing by Ludwig Burger)
