German upper house approves energy package, reduces tax on gas

Germany's upper house of parliament, the Bundesrat, approved a legislative package on energy on Friday to reduce gas consumption by reinforcing supplies and expanding renewable energy, as well as reducing the tax on natural gas.
The measures are also designed to improve the framework for solar and wind energy as well as biogas and liquefied natural gas.
Michael Kellner, the parliamentary state secretary at the Economy Ministry, said the legislation was important to secure energy supplies in Germany, and become more independent from Russian fossil fuels.
The Bundesrat approved decreasing tax on natural gas from 19% to 7% starting this month, in light of the energy crisis provoked by the war in Ukraine.
The tax reduction will remain in effect until March 2024.
Some €200 billion ($196 billion) have already been earmarked by the German government to support citizens and businesses through the current energy and inflation crisis. Some of this is to go toward a price cap to reduce energy bills. This is still in discussion, however.
Finance Minister Christian Lindner said on the radio on Friday that "by next week or the week after next at the latest, we will have clarity on this." The price cap is "not an easy undertaking," Lindner said.
The government has appointed an expert committee to recommend a price cap plan. The committee plans to meet this weekend to come up with a proposal to be presented on Monday, a spokesperson said on Friday.