Germany Forced to Drop Nuclear Tax

June 8, 2017 Taxation in Germany

Nuclear Power Plant, GermanyBERLIN – Nuclear power generators in Germany are set to see a windfall of billions of euros, after a court ruled that a six year old tax on nuclear power was unconstitutional.

The Constitutional Court of Germany has ruled that the government’s tax on the use of nuclear fuel rods by energy producers is unconstitutional and void.

The ruling means that the billions of euros paid by the energy producers since 2010 will be refunded.

It has been estimated that the payout by the government could reach EUR 6 billion, even before interest is taken into account.

The German government has been taking repeated actions to diminish the use of nuclear power in the country, after vowing in 2011 that by 2022 Germany would no longer rely on nuclear-power generation.

The plan to close down the plants is now looking unlikely, as at the end of last year, a court in Germany ruled that forcing nuclear power plants to shut down violated their rights.

Prior to the new ruling, the fuel rod tax was levied at a rate of EUR 145 per gram of nuclear fuel, each time that the fuel rod was changed, which, in a modern plant, occurs about twice a year.

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