German government says low diesel tax is no subsidy
German Federal Government
The German government does not consider the lower taxation of diesel fuel as a subsidy that favours use of the technology. In a response to a parliamentary inquiry by the Green Party, the government says the lower tax for diesel fuel does not amount to a subsidy as diesel cars are subject to a higher car tax than other engine types, arguing the rebate merely is “a general burden balance”. The government also says the definition of subsidies by the Federal Environment Agency (UBA) does not match that of the government itself, which explains why the UBA regularly laments there are more environmentally damaging subsidies in place in the country than the government acknowledges.
Find the government’s response in German here.
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