Federal Government decides on tax relief and higher commuter allowances

(GermanPolicy.com) – The Federal Cabinet has decided, in retrospect to 1 January, a tax relief for commuters and a higher basic allowance in citizens’ tax returns. The commuter rate is to be raised from 25 to 28 Cents per kilometer, while the rate for advertising expenses is to rise from 1,000 to 1,200 Euros. In addition, a basic allowance for income tax declarations for 2022 of 10,347 Euros instead of the previous 9,984 Euros is projected. Federal Finance Minister Christian Lindner (FDP) spoke of relief of 4.5 billion Euros, announcing that further steps would follow. No supplementary budget is necessary, he said.

Union parties calls for dynamic allowance

The parliamentary group of the CDU and CSU in the Bundestag, on the other hand, spoke out in favor of a dynamic approach to the commuter allowance. Group Vice President Ulrich Lange (CSU) said the Union parties wanted “a commuter allowance that automatically increases with the price of gas and compensates for inflation.” The Greens had argued against the higher commuter allowance because it was harmful to the environment. The budget spokesman for the Greens in the Bundestag, Sven-Christian Kindler, emphasized that the increase was “socially unfair and ecologically counterproductive”.

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