The German Bundestag has passed a law on tax relief and an increase in child benefits. The package was brought to the way on Thursday evening with the votes of all factions and against the votes of the Left Group.
The parties of the three former Ampel coalition had announced the agreement on the plans last week. The law aims, among other things, to curb the “cold progression”. As of January 2025, the so-called basic allowance is to be increased, and the amount to be paid in taxes. In addition, the key rates of the income tax scale will be shifted.
Furthermore, it is planned to increase the child benefit from the start of the year by five euros to 255 euros. The Federal Council still needs to approve the plans. As the states are particularly affected by the measure, the approval is still open.