Germany plans tax changes to help households cope with inflation - officials
Reuters
Published Aug 09, 2022 17:54
BERLIN (Reuters) - Germany's finance ministry wants to raise income tax thresholds and slightly increase child benefits in response to the highest inflation in the country in decades, ministry officials said on Tuesday.
The tax free allowance will rise to 10,632 euros next year and 10,932 in 2024 from 10,347 euros currently, the officials said. Meanwhile, the top tax rate will kick in from an income of 61,972 euros next year and 63,515 euros in 2023 compared with 58,597 euros currently.
Child benefits for the first two children will rise by 8 euros to 227 euros next year, the officials said.
Tax revenue is set to decline by 10.12 billion euros next year as a result, and 17.5 billion in 2024, the officials said.
The changes aim to provide some relief to households after German inflation hit 8.5 % in July, driven by soaring food and energy prices.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.