The reduction in mineral oil tax and the relief bonus for employees have Bundestag happened. The Federal Council has also already approved the fuel discount, so it can come into force on May 1st. The Federal Council, however, will not decide on the relief bonus until May 8th.
Taxes on diesel and gasoline will be reduced by around 17 cents per liter for two months. How exactly this will affect prices at gas stations is still unclear. There was already a temporary one in 2022 Fuel discount given. At that time, fuel prices had fallen, but not to the full extent of the tax cut. Federal Finance Minister Lars Klingbeil (SPD) said that “very careful attention” will be paid to ensuring that companies pass on the relief to consumers.
Employers criticize relief bonuses
The relief bonus is intended to enable employers to pay their employees a tax- and duty-free bonus of up to 1,000 euros. Payment should be possible until June 30, 2027 and can also be made in several smaller installments.
Employers can decide for themselves whether to pay the bonus. Employers’ association and taxpayers’ association criticize the measurebecause it raises expectations of companies that sometimes cannot meet them. It is unclear how many companies actually want to pay out the bonus. In response to the criticism, the coalition extended the deadline for payment of the bonus.
According to the draft law, tax exemption costs the state up to around 2.8 billion euros because the employer’s premium is deductible as a business expense and the employee does not have to pay tax on it. The tobacco tax should be increased to counter-finance this. However, there are no details yet.