he new year is just over a week old. That’s probably not long enough for you to become aware of all the cost increases that have made life more expensive and your financial flexibility smaller since January 1, 2024.
With a bit of luck, you won’t be affected by one or two increases, or won’t be affected as much. But in the long term, hardly any citizen will be able to completely escape the traffic light coalition’s new tax and levy rage. The increase in taxes and duties did not just begin on January 1st.
The federal government implemented a significant increase in the truck toll in December. Since these additional costs affect practically all goods that are moved over just one kilometer on German highways, an impact on prices for end consumers and thus also on the inflation rate in the country is inevitable.
The taxpayer is free to milk and the citizen is free to slaughter
However, on January 1, 2024, the climate rescuers of the traffic light coalition took particularly courageous action again. Several increases affect VAT. For gas, this will be increased again from the reduced tax rate of seven percent to the normal tax rate of 19 percent. The same applies to district heating, to the food and drinks ordered in restaurants and to the children’s school and daycare meals.
Electricity and energy costs are also rising sharply. The fees for the transmission of electricity, the so-called network fees, are doubling, the CO2 tax has been raised significantly and the electricity prices will follow shortly, because no supplier will be able to afford in the long term not to pass on these tax increases to the end consumers.
Because it is so beautiful, there is now a plastic tax and the heating law starts. Additional health insurance contributions are increasing and many municipalities are increasing property taxes or making the costs for drinking and wastewater more expensive. Insurance companies are also increasing the tariffs for their services and the communities’ asylum and refugee costs are going through the roof unabated.
It is probably only a matter of time before the next wave of strong tax and levy increases collapses on us. But don’t worry: as long as we enjoy this traffic light government, the constant unabashed reaching into our wallets should be as safe as the amen in church. So enjoy the rest of this short year while you still have some breathing room.