Germans could soon be paying less tax on their income. Federal Finance Minister Christian Lindner (FDP) is planning relief in the coming year, as BILD reported on Monday. According to this, the basic allowance is to increase by EUR 561 to EUR 10,908 from 2023. The child allowance is to increase by 404 euros to 6024 euros.
Lindner explained to the newspaper: “If the standard rate of citizen income increases in January, then the basic allowance for wage tax must also increase. Welfare recipients and working taxpayers alike deserve fairness.”
Around 48 million Germans could benefit from the project. For implementation, however, the Bundestag must agree.
Lindner is reacting to the high inflation by raising the allowances. Taxpayers who pay more taxes after a wage increase no longer automatically slide into a higher tax bracket.
