Meretz commits to lowering electricity taxes in Germany

German Chancellor Friedrich Merz has pledged to reduce electricity taxes for all consumers in Germany to the minimum level applied within the European Union, in order to improve credibility and lessen the burden on citizens. This reduction was scheduled to be implemented last year, but the government backed down due to limited budget resources. Currently, the tax rate stands at 2.05 cents per kilowatt-hour, which is added to consumers’ electricity bills, with the possibility of lowering it to 0.05 cents for some commercial sectors. The government is studying the possibility of applying this rate to all consumers, contingent upon improved economic growth and an increase in tax revenues by around 5 billion euros.

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