Merkel's conservatives want stimulus package to include tax relief - document

BERLIN (Reuters) - Chancellor Angela Merkel's conservatives are in favour of bringing forward tax relief measures worth at least 5 billion euros to help companies and consumers recover more quickly from the coronavirus pandemic, a document showed on Monday. Merkel's coalition government, which in March approved an unprecedented 750 billion-euro rescue package to shield Europe's largest economy from the impact of the coronavirus, is due next week to present additional stimulus to sustain the recovery. In a position paper seen by Reuters, lawmakers from Merkel's conservative bloc called on several measures to reduce the tax burden for the private sector, including making it simpler to offset losses against tax and speeding up already agreed tax cuts

Reuters May 26, 2020 01:05:28 IST
Merkel's conservatives want stimulus package to include tax relief - document

Merkels conservatives want stimulus package to include tax relief  document

BERLIN (Reuters) - Chancellor Angela Merkel's conservatives are in favour of bringing forward tax relief measures worth at least 5 billion euros to help companies and consumers recover more quickly from the coronavirus pandemic, a document showed on Monday.

Merkel's coalition government, which in March approved an unprecedented 750 billion-euro rescue package to shield Europe's largest economy from the impact of the coronavirus , is due next week to present additional stimulus to sustain the recovery.

In a position paper seen by Reuters, lawmakers from Merkel's conservative bloc called on several measures to reduce the tax burden for the private sector, including making it simpler to offset losses against tax and speeding up already agreed tax cuts.

"The abolition of the solidarity surcharge is to be brought forward to July 1 and should apply in full," it said, referring to a tax introduced after the county’s reunification.

The document, prepared by lawmakers from Merkel's conservatives, is to be discussed on Tuesday during a closed-door meeting of the CDU/CSU parliamentary bloc.

Germany's coalition parties agreed last year to abolish the 'soli' - a tax surcharge introduced in 1991 to help finance the cost of reuniting West and East Germany - for more than 90% of taxpayers from January 2021.

Finance Minister Olaf Scholz from the co-governing Social Democrats has already suggested bringing this forward to July, which would cost the state around 5 billion euros. But Scholz is against granting the relief for all taxpayers.

The German stimulus package is expected to include relief for municipalities struggling with lower tax receipts, cash handouts for families with small children as well as further funds for companies with fewer than 250 employees.

(Reporting by Michael Nienaber; Editing by Giles Elgood)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

Amazon union vote enters final stretch in watershed moment for U.S. labour
Business

Amazon union vote enters final stretch in watershed moment for U.S. labour

By Mike Spector and Jeffrey Dastin (Reuters) - The National Labor Relations Board has begun reviewing ballots from Amazon.com Inc's workers in Alabama, who have voted on whether to form a union, with momentum for future labour organizing at America's second-largest private employer hanging in the balance. Agents from the labour board began sifting through ballots sent to more than 5,800 workers at Amazon's Bessemer, Alabama-based warehouse at 10 a.m

Spotify buys Locker Room app's maker Betty Labs in live audio push
News & Analysis

Spotify buys Locker Room app's maker Betty Labs in live audio push

By Elizabeth Culliford NEW YORK (Reuters) - Spotify Inc said on Tuesday it has purchased Betty Labs, the company behind sports-focused social audio app Locker Room, to accelerate its move into live audio. New voice-based platforms, including invite-only social app Clubhouse, have seen rapid growth in recent months during the COVID-19 pandemic.

Oil falls as Suez Canal opens, dollar rallies; eyes on OPEC+ meeting
Business

Oil falls as Suez Canal opens, dollar rallies; eyes on OPEC+ meeting

By Devika Krishna Kumar NEW YORK (Reuters) - Oil prices slid on Tuesday as the Suez Canal reopened to traffic and the dollar rallied, while focus turned to an OPEC+ meeting this week, where analysts expect an extension to supply curbs to offset dim demand prospects. Brent crude fell $1.20, or 1.9%, at $63.78 a barrel by 1:12 p.m.