NG Fuel Tax Incentive Extended in Germany

| Germany, Berlin

Germany’s Bundestag has approved the continuation of the tax reduction for natural gas and biomethane as a fuel, reports NGV industry group Erdgas Mobil GmbH. The parliamentary parties of the CDU / CSU and SPD submitted a corresponding motion for a resolution, which calls on the federal government to submit a bill to extend the energy tax reduction of natural gas and LPG fuel until spring 2016.

The industry initiative Zukunft ERDGAS (Future Gas eV), a body formed to represent the gas market for mobility and for heating in Germany, urges a rapid refinement of the draft law.

“We are pleased that the Bundestag has, after lengthy discussions, come to the decision to continue the tax reduction for natural gas as fuel,” said Dr. Timm Kehler, head of Future GAS eV.  He expalins the extension is an important signal for the planning and investment security of consumers and all market partners. Kehler says his group will actively pursue extending the incentives through to 2026.

By end 2018, a reduced energy tax rate applies to natural gas and Biomethane as a climate-friendly fuel. With the update of the tax reduction, the decarbonisation of the transport and the penetration of natural gas vehicles, which are offered by many manufacturers, should be further developed, Kehler states.

(Source: Erdgas Mobil)

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