The Minister of Finance wants to relieve the citizens because of the high energy prices.
(Photo: IMAGO/Chris Emil Janssen)
Berlin The federal government has introduced the first tax relief in response to the skyrocketing energy prices. The Cabinet on Wednesday approved the draft Tax Relief Act 2022, as Federal Finance Minister Christian Lindner announced on Twitter.
In addition, the traffic light coalition wants to double the one-time heating subsidy for housing benefit recipients. Instead of the previously planned 135 euros for a one-person household, there should be 270 euros, as SPD faction leader Verena Hubertz announced on Wednesday after consultations with the Greens and FDP.
“We know that low-income households in particular are suffering from rising energy prices,” explained Hubertz. “I expect the payment to be made by the end of the year at the latest.” The coalition will also quickly initiate further relief.
FDP parliamentary group leader Christian Dürr emphasized that he was glad that the traffic light coalition was reacting quickly and creating additional relief. The subsidy, especially for low earners, is an important first step. “We will discuss further relief options with the coalition partners this week,” he announced.
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According to previous planning, the heating cost subsidy is to be decided by the Bundestag on Thursday. More than two million people who receive housing benefit or who are dependent on state aid as students or trainees are to benefit from this. According to the coalition, it would now be 350 euros for a two-person household and 70 euros for each additional family member. Students and trainees with state aid such as Bafög should therefore receive a one-off payment of 230 euros.
In the planned tax relief law, FDP politician Lindner is turning three screws. The employee lump sum for income-related expenses will be increased by 200 euros to 1200 euros retrospectively as of January 1, 2022. This also applies to the increase in the basic allowance for income tax by EUR 363 to EUR 10,347.
Long-distance commuters can also claim 38 cents per kilometer from the tax retrospectively from the beginning of the year from the 21st kilometer. “It’s clear to me that further measures must follow,” the finance minister also announced.
According to the cabinet proposal, the measures taken together this year will result in reduced tax revenues of around 4.5 billion euros for the federal, state and local governments. The federal and state governments bear the largest parts. In the years up to 2026, too, the revenue shortfall will be more than four billion euros.
More: Christian Lindner defends the tank discount: “Relief directly at the checkout”