Germany to stick to VAT reduction despite gas levy questions - sources
BERLIN, Sept 27 (Reuters) - German consumers look set to get a reduced sales tax on gas as promised, sources from the coalition government told Reuters on Tuesday, even as a parallel measure that would allow struggling gas importers to pass on their costs appears shaky.
In August, the government said it would temporarily lower value-added tax (VAT) on gas from 19% to 7% to cushion the blow of a planned levy on consumer gas bills set to come into place on Oct. 1.
However, that levy was called into question when the government nationalised Uniper, one of the utilities the measure aims to help. The government has promised a new "comprehensive solution" in the coming days.
"Despite the open questions on the gas levy, we will reduce the sales tax on gas," said a representative of the three-way coalition.
Another government representative said the VAT reduction would not automatically fall away as a result of the gas levy being scrapped and that it was still planned to remain in place until the end of March 2024. (Reporting by Christian Kraemer and Markus Wacket, Writing by Rachel More)
