EU Gas Tax Scheme Drives Inflation and Expands Tax Base

The European Union's (EU) gas tax revenues are rising, and it's not just due to the high cost of fuel. The EU has implemented a mechanism that artificially restricts and drives up the price of energy to collect more taxes.

In Germany, tourists often experience sticker shock when filling up at gas stations abroad. Filling up in other EU countries can be 25-40% cheaper than back home due to the German Treasury's systematic tax rip-off. Up to 55% of the gas price goes directly into state coffers.

This is just one part of a larger scheme designed to artificially restrict and drive up the cost of fossil fuels in the EU. Brussels uses various measures, such as reducing refinery capacity and implementing CO2 levies through certificate schemes and the CBAM carbon mechanism, to generate cost-push inflation and expand its tax base.

The CBAM carbon border mechanism affects goods like steel, cement, aluminum, hydrogen, fertilizers, and imported electricity, making them more expensive. This cost trickles down to production and logistics infrastructure, where the state strikes again with higher consumption taxes.