1st Relief Package

First relief package of emergency measures agaist rising energy prices were announced by coalition on 23 February 2022 as part of “10 relief measures for Germany”. These included:

• EEG levy abolition brought 6 month early. The EEG levy (3.72 cents per kilowatt hour) aims to make renewable-based electricity generation more competitive by charging consumers the difference between the spot price of renewable electricity and the marginal cost of electricity production. The federal government had initially planned to remove this levy from consumers and absorb the cost through the federal budget from 01/01/2023, but now this will be brought forward to 01/07/2022.
• Heating cost subsidy for the vulnerable. One-time subsidy for people on housing benefits receive EUR 270 (in a household with two people: EUR 350, each additional family member an additional EUR 70). Apprentices and students receiving student loans 230 euros.
• Increase in tax-free mileage allowance. For business travel over 21 km, EUR 0.38 per km is tax deductible from commuter fee paid by employer. The mobility premium also rises accordingly.

Measures were promulgated on various dates through different channels such as the 2022 Tax Relief Act (Steuerentlastungsgesetz 2022), the Fourth Coronavirus Tax Assistance Act, and the 2022 Federal Supplementary Budget. In the 2023 Federal Budget, the Ministry of Finance announced that almost the entirety of the package budget has been disbursed.

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