Germany will offer tax relief to companies and individuals worth $34.1 billion from 2023

In a statement Germany’s new Finance Minister said, the government will offer tax relief to individuals and companies worth $34.1 billion (30 billion euros) in this legislative period.

“We will relieve people and small and medium-sized businesses by significantly more than 30 billion euros,” said Lindner.

While noting that the 2021-2022 budget was put together by the previous government under Chancellor Angela Merkel, Lindner said his draft for 2023 will include relief such as on pension insurance contributions, and the end of an electricity price surcharge.

Lindner, leader of the fiscally cautious Free Democrats (FDP), said he had asked his cabinet colleagues to review the spending projects of their ministries.

“We have to go back to sound public finances. We have a responsibility towards the younger generation,” said Lindner.

Suggesting a way forward to cut spending, Lindner said, the government would scrap the construction of a new government terminal at Berlin’s BER airport, which is set to cost 50 million euros, suggesting that the temporary building could be used permanently.

He went on to add, the government is also planning a tax bill to help businesses cope with the Coronavirus pandemic, which includes allowing them to offset losses in 2022 and 2023 against profits from previous years.

Because of the coronavirus pandemic, Chancellor Olaf Scholz’s coalition has agreed to use an emergency clause in the constitution for a third year in a row in 2022 to suspend debt limits and enable new borrowing of 100 billion euros.

From 2023 onwards, the coalition aims to return to the debt brake rule in the constitution that limits new borrowing to a tiny fraction of economic output.

($1 = 0.8797 euros)

Categories: Creativity, Economy & Finance, Entrepreneurship, HR & Organization, Regulations & Legal, Strategy, Sustainability

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