German finance minister announces additional tax cuts of two billion euros

GERMAN Finance Minister Christian Lindner on Friday (Sep 8) announced additional tax cuts of almost two billion euros (S$2.9 billion) for 2024 that are not yet included in the draft Budget.

On Jan 1 of next year, the tax-free basic allowance will rise by 180 euros to 11,784 euros. Taxable income that is below this subsistence minimum is not subject to income tax.

The child basic allowance, a tax credit for parents, will also rise by 228 euros to 6,612 euros, Lindner told the Bundestag parliament during a debate on the Budget.

“This is additional tax relief for citizens in the order of around 1.94 billion euros,” he said.

The government is thus following a constitutional requirement to adjust the tax-free minimum subsistence level on an annual basis. REUTERS