Germany MOF Issues FAQs on Tax Implications of Climate Protection Program

The German Ministry of Finance Dec. 18 issued FAQs on the tax implications of new environmental regulations that are part of the 2030 Climate Protection Program. Topics covered include: 1) the introduction of new carbon dioxide (CO2) pricing for transport and buildings, beginning Jan. 1, 2021; 2) a reduced VAT rate of 7 percent from 19 percent for long-distance rail tickets; 3) an increased commuter tax allowance; 4) an increased rate to 13 euros (US$14) from 7.50 euros (US$8.33) on domestic flights; 5) increased tax rates of 33 euros (US$37) from 23 euros (US$26) for flights between 2,500 to 6,000 ...