The Danish economy is doing well, and high employment has meant that there is actually even more money in the Danish treasury than previously expected.
This led to the government on Friday adjusting the economic room for manoeuvre by 11.25 billion. DKK. This has sparked debate about what the money should be used for, and everything from more welfare to tax breaks has been brought to the table.
But when it comes to Green Power Denmark, it is a tax, specifically the electricity tax, that should be lowered. The electricity tax in Denmark is the highest in Europe, and according to the trade organization, abolishing it would be socially responsible and common green sense.
- We would like to see the government use some of the money from the room for manoeuvre on the green transition and abolish the electricity tax. That is green common sense. It simply does not make sense to tax the energy we need more of and which is supposed to replace fossil fuels in our consumption, says Kristian Jensen, CEO of Green Power Denmark, in a press release.
Specifically, Green Power Denmark proposes that from 2025 to 2030 the electricity tax be gradually lowered to the EU's minimum level of 0.8 øre/kWh. This corresponds to an annual reduction of approximately 13 øre from 2025 to 2030 and will provide an annual saving for an average family of DKK 3,100 per year in 2030. In total, it will cost approximately DKK 5.5 billion.
- The high electricity tax distorts households' consumption choices, reduces their real wages and affects society unevenly. A lower electricity tax would be a socially balanced way of implementing tax cuts, as it would hit the lowest incomes the hardest, says Kristian Jensen.
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