In 2006, Germany implemented Council Directive 2003/96/EC
restructuring the Community framework for the taxation of en-
ergy products and electricity. In addition, the European Commis-
sion reviews derogations from the Directive on an ongoing basis
in order to achieve greater transparency and greater coherence
in energy tax legislation.
In Germany, the taxation of energy products underwent a fun-
damental reform in 2006. Parts of the EU Energy Tax Directive
were implemented in connection with the reform. As part of this
reform, the previous Mineral Oil Tax Act (Mineralölsteuergesetz)
was repealed and replaced with the Energy Tax Act (Energie-
steuergesetz), effective as of August 2006. Compared with the
prior tax situation, the legislation broadens the range of items
subject to taxation.
Under the new law, both lignite and hard coal
are taxed and new regulations regarding the taxation of natural
gas have been introduced.