Bavaria is advocating for an increase in inheritance tax allowances, arguing the current system places undue financial pressure on citizens and hinders economic growth. State Finance Minister Albert Füracker emphasized the region’s long-standing commitment to inheritance tax reform, clarifying that the goal is relief, not increased taxation.
Füracker stated that the existing tax-free allowances, which have remained unchanged for 17 years, urgently require adjustment to reflect rising costs. He highlighted concerns that the current financial burden is forcing heirs to sell family homes, such as parental residences, to cover inheritance tax liabilities.
The call for reform echoes recent statements from CDU parliamentary group leader Jens Spahn, who has also signaled the need for adjustments to the inheritance tax framework. Bavaria is also a proponent of regionalizing the tax system, currently challenging the existing regulations through a legal case before the Federal Constitutional Court.
Minister Füracker cautioned against linking any inheritance tax reform with potential tax increases, signaling that such measures would negatively impact Germany’s economic attractiveness, particularly for businesses and those undertaking business succession. He underscored the need to stimulate economic recovery given the presently strained economic climate.