The Cabinet has given the go-ahead to a Bill to amend the provisions of the renewable energy law. This ensures that the tax concessions given to energy intensive companies are not contrary to EU law, while preserving the competitive nature of energy intensive industry in Germany.
The amendments mean that qualifying companies will pay 15 percent of the levy, up to a limit of 4 percent of value added, if their electro-intensity is under 20 percent. There is a cap at 0.5% of the gross value added in the case of enterprises with electro-intensity over 20 percent. The Bill provides that tax payments of any company must not increase by more than twice from one year to the next until 2019.
