German Windfall Tax Delayed Until Beginning of December

(Bloomberg) -- The German government will delay the start of a planned windfall levy for power producers, the Economy Ministry said.

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Instead of applying the tax retroactively from September, it will go into effect starting December until the end of June 2023, according to a statement on Friday.

The decision came after energy lobby groups had criticized the planned levy, which is designed to fund parts of a broader effort to cap gas and power prices for households and businesses. The package was approved by cabinet on Friday, German Chancellor Olaf Scholz said in Berlin.

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