Kassel. An energy tax reduction for natural gas as a fuel will continue to apply beyond 2018. On Wednesday, February 15, the German cabinet agreed to extend tax relief for natural gas as a fuel until 2026.
The aim is to give impetus to the market for the climate-friendly fuel. The decision envisages a continuation of the tax relief until 2026: The reduction will remain in its existing scope until 2024, with a degression then planned for the years thereafter. Continuation of the tax relief was already anchored in the coalition agreement, but has only now been implemented.
“The extension was overdue, with uncertainty recently already bringing about a decline in the market,” said Timm Kehler, Chairman of Zukunft ERDGAS. He said that the Ministry of Transport was creating planning security through 2026 with the decision and hence ideal conditions for developing the alternative fuel. “Manufacturers, customers and filling station operators now have clarity,” stressed Kehler.
Natural gas as a fuel (CNG) is a key component for achieving climate targets in the transport sector. Gas-powered vehicles emit around a quarter less CO2 than comparable diesel vehicles and around a third less than petrol vehicles. They also emit hardly any nitrous oxides or particulates. “Thanks to the tax reduction, natural gas is not only clean, but also inexpensive. That makes it a real alternative to petrol and diesel,” says Kehler.