Germany’s Finance Minister Pushes for Business Tax Relief
Germany’s finance minister, Lars Klingbeil, is accelerating the passage of a bill aimed at reducing taxes for businesses. According to a report by the “Handelsblatt” on Monday, the minister plans to present the draft bill to the cabinet as early as next Wednesday.
The government emphasizes the need for “swift and binding planning security and investment incentives” for the economy, with a growth strategy taking top priority. As part of the plan, Klingbeil intends to introduce tax cuts for companies, with the relief measures growing over the years and expected to reach 17 billion euros by 2029. When the tax cuts for the period of 2025 to 2029 are combined, the total amount comes out to be 48 billion euros, to be shared by the federal, state and local governments.
The “draft law for a tax investment stimulus program to strengthen Germany’s business location” will implement several measures agreed upon by the coalition parties, including an “investment booster”, a reduction in corporate tax and new depreciation for electric vehicles.