Wednesday, November 20, 2019

Explaining the German Gas Tax

For the record, German diesel tax added to the value of a liter....amounts to 47-Euro cents.  For gas?  It's 65-Euro cents.

Then on top of that....the 19-percent VAT is added. 

When you pull into an Esso station in Germany, and the morning price for a liter of fuel is around 1.44 Euro....the vast majority of that is tax. 

So this brings me to an curious question, with no true answer.....when 2030 arrives, and no new gas/diesel cars are sold, and we enter this period of e-cars....won't there be an enormous 'hole' in the German budget with the missing tax revenue? 

Well, this is rarely if ever discussed by the news media or politicians. 

Electrical taxes likely to spin up?  I would take a guess that the current taxation rate on electricity will have to not just double, but likely triple.  But this also brings up the problem if people pursue solar panels, and skip around taxation on electricity. 

A bigger problem down the line?  More than likely. 

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