Global Daily Tax News, German Cabinet Clears Energy Tax Cut Package, (Sep 19, 2025)

Germany's Cabinet has approved an amendment to the Energy Tax and Electricity Tax Acts to provide for permanent electricity tax relief for companies engaged in the manufacturing, agricultural, or forestry sectors.

Under the legislation, these businesses will permanently pay only the minimum EU tax rate.

The measure is part of a package of energy tax cuts for both businesses and households, worth EUR6.5bn per year starting from next year. Households will in particular benefit from a waiver of the gas storage levy from 2026, while tax will also be cut for electricity-intensive industries, including those exposed to international competition, including the chemical and mining industries, and various local businesses also.

Federal Finance Minister and Vice Chancellor Lars Klingbeil said: "Through lower energy prices, we are securing jobs in Germany. This is my top priority. Therefore, as a first step, we are reducing energy prices so that more than 600,000 manufacturing companies, from carpentry shops to industrial enterprises, will experience noticeable relief, because competitive energy prices are and will remain crucial to Germany's strong economic position."