The Federal Council has cleared the way for the tax relief law and the increase in child benefit. The draft was approved by a majority in the Land Chamber on Friday.
The Bundestag had passed the law on Thursday evening with the votes of all factions and against the votes of the Left Group. Since the states are particularly affected by the measure, a Bundesrat approval was still open until the end.
The three parties of the former Ampel coalition had announced their agreement on the plans last week. The law aims, among other things, to curb the “cold progression”.
Effective January 2025, the so-called basic allowance, which must be paid in taxes, is to be increased. Furthermore, the key rates of the income tax scale are to be shifted.
Additionally, it is planned to increase the child benefit to 255 euros from the start of the year, by five euros.