(de-news.net) – The Bundesrat has formally approved the 2025 Tax Amendment Act, thereby authorizing a comprehensive package of fiscal measures that combine targeted economic relief with structural adjustments to tax and legal provisions. The legislation is designed to ease financial pressures on households and enterprises while simultaneously modernizing aspects of association law. Among its most prominent features is a substantial reduction in the value‑added tax applied to the gastronomy sector. Beginning on January 1, 2026, the rate for restaurant services—excluding the sale of beverages—will be lowered from the current 19 percent to seven percent. Government representatives explained that this change is expected to generate annual relief amounting to approximately 3.6 billion euros, a sum that will benefit both consumers through lower prices and businesses through reduced tax liabilities.
On the same date, the commuter allowance will be restructured to provide broader coverage. The allowance will rise to 38 cents per kilometer and will apply from the very first kilometer traveled. Previously, this rate had only been granted from the twenty‑first kilometer onward, leaving shorter commutes less favorably treated. Policymakers argued that the adjustment is intended to create a fairer system that recognizes the costs borne by all commuters, regardless of distance.
In addition to these fiscal measures, the Act introduces reforms in association law by expanding liability privileges for volunteers. The objective is to strengthen legal protections for individuals engaged in civic participation, thereby encouraging broader involvement in community and nonprofit activities. By reducing personal liability risks, lawmakers hope to secure the long‑term viability of voluntary work, which is considered an essential component of social cohesion.
The legislative process leading to adoption was marked by extended disputes between federal and state authorities. State governments repeatedly voiced concerns that the package imposed disproportionate burdens on their budgets, arguing that the financial consequences were not evenly distributed. Despite these objections, they ultimately refrained from convening the mediation committee, a decision that cleared the way for the reform to proceed without further delay.
