Saxony’s SPD Praises Gas Tax Rebate — But Calls for a Surplus Profit Tax

The announcement of a gas rebate is good news for Saxony’s SPD. The 17-cent-per-liter relief will provide quick and immediate help to commuters, families, and businesses, said Saxony’s SPD leader Henning Homann. “It’s the right thing to do—we shouldn’t leave people to fend for themselves in the face of high gas prices.”

However, Homann emphasized that the fact the gas rebate is financed by taxpayers leaves a very bitter aftertaste. A windfall profit tax at the European level is absolutely necessary to finance the fuel rebate. “Oil companies must not be allowed to reap outrageously high profits from a crisis at the expense of the general public. If the government is spending billions to ease the burden on citizens at the gas pump, those who benefit most from the high prices must contribute.”

On Friday, the federal and state governments agreed to provide relief to citizens and businesses through a new fuel rebate starting in October. To this end, the energy tax on gasoline and diesel is to be reduced by 14 cents per liter by the end of the year. Together with the sales tax, this amounts to a reduction of 17 cents per liter. The federal and state governments are allocating approximately 2.5 billion euros for this purpose.

The relief package is scheduled to be implemented by October 1. In addition to the fuel discount, a fuel price cap is also planned to take effect no later than January 2027, but it is intended as a crisis measure and not a permanent solution.