German Finance Minister pledges to cut taxes from 2023

© Reuters. File picture: German Finance Minister Christian Lindner speaks at a plenary meeting of the Lower House of the German Bundestag on December 16, 2021 in Berlin, Germany. REUTERS/Annegret Hilse

BERLIN (Reuters)-German Finance Minister Christian Lindner said on Sunday that the new German government will provide tax breaks to individuals and companies worth at least 30 billion euros ($34.1 billion) during the legislative period.

“We will reduce the burden of more than 30 billion euros for the people and small and medium-sized enterprises,” Lindner told Bild.

Lindner pointed out that the 2022 budget was formulated by the former government led by former Prime Minister Angela Merkel. He stated that his 2023 draft will include pension insurance contributions and other relief measures, as well as cancellation Electricity price surcharge.

At the same time, Lindner, the leader of the fiscally prudent Liberal Democratic Party (FDP), said he has asked his cabinet colleagues to review the spending items of their ministries.

“We must return to sound public finances. We have a responsibility to the younger generation,” he said.

Lindner said that one way to save money is to cancel the construction of the new government terminal at Berlin BER Airport, which is expected to cost 50 million euros. He suggested that temporary buildings could be used permanently.

The minister also plans to introduce a tax bill to help companies cope with the ongoing coronavirus pandemic, including allowing them to offset their losses in 2022 and 2023 with their profits from previous years.

Due to the pandemic, Prime Minister Olaf Scholz’s ruling coalition agreed to use the constitutional emergency clause for the third consecutive year in 2022 to suspend the debt limit and allow 100 billion euros in additional borrowing.

From 2023, the goal of the coalition is to restore the constitution’s debt brake rules and limit new borrowing to a small portion of economic output.

(1 USD = 0.8797 Euro)

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