In view of the dramatic increase in energy prices and high inflation, the German Trade Association (HDE) is pressing for the speedy adoption of a third relief package for private households and companies.
“In order to prevent a broad exitus in retail and in our inner cities as well as a further increase in food prices, the price increases must be cushioned quickly and in a targeted manner,” write HDE President Josef Sanktjohanser and HDE Managing Director Stefan Genth in a joint letter to the heads of the Traffic light coalition, including Federal Minister Robert Habeck (Greens), Federal Finance Minister Christian Lindner (FDP) and Federal Labor Minister Hubertus Heil (SPD).The letter is available from the German Press Agency.
The HDE sees the introduction of a temporary energy price brake as a central building block for a relief and support package. This must apply to private households and companies. The reduction in the electricity tax from the current 2.05 cents per kilowatt hour to the European minimum of 0.05 cents is also a sensible instrument from the point of view of the association.
Low-income households would also have to be relieved by transfer payments and middle incomes by reducing the so-called cold progression. This is a kind of creeping tax increase when salary increases are eaten up by inflation, but still lead to higher taxes. (dpa)