According to the President of the Federal Environment Agency, the increased fuel costs should not be cushioned by blanket relief. Instead, he advises to relieve low earners in particular.
The President of the Federal Environment Agency (UBA), Dirk Messner, advises targeted relief for citizens with low incomes when dealing with high fuel and energy prices.
“Flat-rate tank discounts or energy and value-added tax exemptions for fuel are the wrong way, both economically and in terms of climate policy,” said Messner of the German Press Agency. The head of the UBA warned that higher costs for heating and mobility should not be cushioned “with the watering can”.
Targeted relief
To relieve drivers, Messner proposes a subsidy based on the distance traveled to work each year. The tax office can grant it in advance on the basis of the data from the previous year, said Messner. If the subsidy has to be adjusted upwards or downwards afterwards, according to Messner, the data from the income tax return can be used for comparison.
In addition, the head of the UBA campaigned to either keep ticket prices for public transport stable or to reduce them. Around half of the households in Germany that have a low income do not own a car at all.
Environmental groups had previously warned against flat-rate relief, which could primarily benefit higher earners. Among other things, the WWF Germany called for a so-called mobility allowance graded according to income. In addition, the environmental organization warned that when it comes to relieving citizens, “much more attention” should be paid to rising heating costs.
Several suggestions
Several proposals from the federal ministries had already been made known for social cushioning of the rising energy costs. For example, Finance Minister Christian Lindner (FDP) had proposed paying a subsidy to all drivers without social differentiation when filling up. In addition, according to a report by “Bild am Sonntag”, the proposal by Minister of Labor Hubertus Heil (SPD) for a mobility allowance graded according to income is also being discussed. The Federal Government’s deliberations on this are still ongoing.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
