Tuesday, March 8, 2022

Are There Three Taxes On Every Liter of Gas Sold in Germany?

Well....YES.

So you have the VAT which is 19-percent of whatever value the liter is assigned.

Then you have the C02 tax, which is between 5 and 6-percent of the liter cost.

Then you have the mineral oil tax, which amounts to roughly 65 Euro cents per liter.

So out of the two Euro now for each liter of E-10 unleaded....about two-thirds of the cost factor goes back to tax.  

The necessity of having three separate taxes on the same liter?  Every time this gets brought up....the pro-tax guy gives a explanation that seems to coming out of a 12-year old kid's mind.  If you had to pick a dozen things that most all Germans agree upon...moving to one simple fuel tax would be one of the dozen they'd change.

If you wanted a comparison...it'd be like creating a Coke-tax, where you tax the can/bottle at 19-percent VAT (sales tax), then add a 62-cent sugar tax, and then add a 9-cent C02 tax for energy required to transport the can.  So you'd be paying around 2.50 Euro for each can of Coke.  

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