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German opposition campaigns against "ecology" tax,

German opposition campaigns against "ecology" tax

BERLIN, Dec 29 (Reuters) - Germany's opposition conservatives stepped up their campaign on Friday against the ruling centre-left coalition's plans to increase "ecology" taxes on petrol from the start of 2001.

The Christian Democrats (CDU) distributed red and green petrol cans containing premium gasoline to motorists at garages to protest against the tax, which will add six pfennigs (2.8 U.S. cents) to a litre of petrol from January 1.

Using the slogan "Let's get tanked one more time," Christian Democrat general secretary Laurenz Meyer sought to build on widespread dislike of the tax -- a key demand of Chancellor Gerhard Schroeder's junior coalition partners, the Greens.

"The ecological tax is neither economically nor ecologically sound. Not one pfennig goes to the environment," Meyer said in a statement to launch the campaign.

The tax is designed to cut energy consumption by making fuel more expensive and the multi-billion annual proceeds from the tax are earmarked to help prop up Germany's over-stretched pension system.

The eco-taxes, introduced on a range of carbon-based fuels last year and due to rise incrementally to 2003, have proved unpopular and opinion polls show that around 80 percent of Germans oppose the tax.

In the last year, petrol prices have risen from around 1.50 marks per litre to around two marks. In the last few weeks prices have come down to around 1.90 marks per litre.

08:38 12-29-00

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Fri Dec 29