Use Gas, Pay Tax: Germany Plans to Make Changes

Germany is preparing to impose a tax on all gas consumers to assist suppliers in combatting the rising costs of gas imports. According to the draft legislation, the purpose of the tax is to distribute the additional expenses of replacing Russian gas among all users and to prevent insolvency among gas traders, Reuters reports.

The document states that households and industrial consumers with long-term contracts will be taxed, which will remain in effect until the end of September 2024. Gas importers will be required to absorb the increasing costs.

Germany's Minister of Economy, Robert Habeck, announced that the tax will range from 1.5 cents to 5 cents per kilowatt-hour, and the revenue will be available to all companies that need to replace Russian gas. This means that a four-person household could face additional costs of up to 1,000 euros.

Further details regarding the tax will be announced in August, the document states.