01 September 2010 17:50 [Source: ICIS news]
The government said the cuts, for estimated budget savings of €1.5bn ($1.9bn)/year, would have no perceptible impact on the competitiveness of
However, Frankfurt-based chemical producers group VCI said the measure was effectively a tax increase that would make production in energy-intensive industries such as chemicals more expensive - to the detriment of
Together with burdens from renewables regulations and emissions trading,
As a result, energy-intensive producers would find it much harder to justify investments in
While VCI welcomed government budget savings, such measures must not go at the expense of industrial employment and growth, he said.
“Only a strong sector of industrial producers will be able to help generate the tax revenues needed to balance government budgets,” he added.
In a related announcement, the government said it expected to make a final decision later this month on a planned special tax on the country’s nuclear industry that would raise some €2.3bn/year to help balance budgets.
A number of German industrial leaders, including BASF chief executive Jurgen Hambrecht, have signed an open letter opposing the tax.
($1 = €0.79)
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