The Bundesrat today refused to approve the tax-free relief premium of up to 1,000 euros. This blocks a key measure from the energy relief package negotiated by the Union and SPD.
States led by the Union voted against the package. Mecklenburg-Vorpommern from the SPD ranks also withheld approval. The states criticized the measure as ineffective and poorly crafted.
Winfried Kretschmann, the outgoing Minister President of Baden-Württemberg, said: “The costs will ultimately remain with the states and municipalities.” The premium, through which employees could have received 1,000 euros tax-free from their employers, will therefore not materialize.
Additionally, the fuel tax cut is so far not being fully passed on to consumers by the mineral oil companies. The energy relief package negotiated in April thus risks fizzling out.
