Friday, November 24, 2017

The German Diesel Tax Discussion

There is a discussion underway at present in Germany....about dissolving the tax advantage of diesel fuel.  The current advantage?  It's worth 21.9 cents per liter.

If you drive around Germany, you tend the difference in pricing.  It was one of the chief reasons that people were encouraged over the past few decades....to buy a diesel vehicle.

The change if this occurs?  Some people suggest it could amount to ten billion Euro a year.  I have some doubts over this number....but it's probably in the ballpark.

How things are stacked up in this argument?  Well....politically.....the CDU and SPD both want the discount to remain.  The Greens?  They want the discount dissolved....rather quickly.

The issue that arises if it dissolves away?  Millions of people around Germany went and bought diesel vehicles with the sales pitch that the discount was part of the everlasting deal.  You can imagine the serious amount of anger and frustration if this were to dissolve and people started to pay the same price as gas.

In terms of being a major topic of discussion?  That's the funny thing about this.  You see almost no real discussion in this public TV chat forums over any of this disel business.  If you dragged out a dozen diesel car owners.....they'd chat about this for an entire hour. 

What would the government go and do with the ten billion a year?  You would think they'd rig up some tax reform deal and hand some money back to the public....but with the Greens involved....they'd likely want the money flushed into the system for public housing or infrastructure. 

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