Within the black-red coalition, there are reportedly discussions about eliminating the tax deduction benefit for skilled trades services. According to a report in the “Bild” newspaper (Tuesday edition), coalition politicians are consulting with business associations regarding what the removal of this tax advantage would achieve and whether such a measure would be feasible. The stated goal is to increase tax revenue for the federal budget. Currently, private households are able to deduct up to 20 percent of vocational service costs, up to a maximum of 6,000 Euros, from their income tax annually. This translates to a maximum tax reduction of 1,200 Euros. The “Bild” reported that the CDU/CSU parliamentary group leadership stated that they knew nothing about a potential abolishment of the tax benefit, citing sources within the group. When questioned by “Bild” a spokesperson for the Federal Ministry of Finance stated simply that they had no information to share on the matter.
Coalition Considers Killing Tax Break for Tradespeople
