German federal economics minister Katherina Reiche (CDU) urged swift tax relief for companies and workers.
Speaking to “Bild am Sonntag”, she said that it would make sense to discuss advancing the reduction of the corporate tax so that the benefits begin to materialise sooner than the planned cut from 2028.
The government’s current plan is to lower the corporate tax rate starting in 2028. When asked about the timing of an income‑tax reform, Reiche added that “we must relieve the labour factor as quickly as possible”. She explained that negotiations with the SPD are underway to determine whether the reform can be accelerated. “The more people work, the more attractive employment becomes, the higher Germany’s productivity, and the lighter the burden on social security systems” she said.
Reiche stressed that the priority should be to move these levers forward as quickly as feasible. The coalition agreement states that the government intends to reduce the income tax for low‑ and middle‑income earners by the middle of the legislative term.