Forecast: Tax Expenditure on All Fossil Fuels for All Beneficiaries or Sectors in Germany

In 2024, Germany's tax expenditure on fossil fuels is forecasted to account for 0.15% of GDP, reflecting no change from 2023. Over the subsequent years, the tax expenditure as a share of GDP is projected to decrease incrementally, reaching 0.13% by 2028. This trend indicates a continuous decline year-on-year, with a standardized year-on-year percentage decrease from 2026 onwards.

Key future trends to consider include:

  • Ongoing government policies aimed at reducing fossil fuel subsidies, aligning with Germany's commitment to climate targets.
  • Potential shifts in energy markets and technological advancements influencing fossil fuel usage.
  • Changes in public sentiment and regulatory frameworks related to environmental sustainability.

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