Airline ticket taxes must be reduced: Black and Red agree on industrial electricity prices

Airline ticket taxes should be reducedBlack and Red agree on industrial electricity prices

Electric blast furnace at a company in Freital, Saxony. (Photo: image alliance / imageBROKER)

Five cents per kilowatt hour: The Merz government plans massive aid to the economy. Among other things, the Chancellor announced state-supported electricity tariffs for industry. Air transport ticket taxes must also be reduced.

The black-red coalition plans to reduce electricity prices for industry. To achieve this goal, state-subsidized industrial electricity prices will be introduced between 2026 and 2028, as announced by Federal Chancellor Friedrich Merz after the coalition committee. He talked about a price target of five cents per kilowatt hour.

There will also be a strategy to build new gas-fired power plants. Next year, 8 gigawatts must be tendered, and they will be put into operation in 2031. The plans are basically known. Merz spoke about important foundations in energy policy.

In addition, the federal government wants to lower taxes on air transport tickets on July 1, 2026. Merz mentioned an amount of around 350 million euros for the benefit of the aviation industry in Germany. If this results in a tax loss, this will be recorded in the transport budget.

In May 2024, aviation taxes are increased significantly. This has the potential to make passenger flights from German airports more expensive. In the coalition agreement, the CDU, CSU and SPD announced they would withdraw the increase. However, this has not been realized so far due to limited budget.

SPD leaders Bärbel Bas and Lars Klingbeil saw the coalition committee’s decision as a sign of the ability of the alliance, which has often come into conflict with the Union, to act. Bas said in Berlin that he was pleased with the results. Klingbeil added: “We are doing our homework as a government.”

Source: ntv.de, jpe/dpa