(GermanPolicy.com) – The German Bundestag passed the tax relief law against the votes of the CDU-CSU. The left and the AfD voted with abstentions. The amount of the relief is 4.46 billion Euros in the current year and probably 22.5 billion Euros by 2026. This is justified with increased prices. Specifically, the basic income tax allowance will be increased from 9,984 to 10,347 Euros retrospectively, from the beginning of the current year. However, the relief for low earners is comparatively higher.
From July, poorer families will receive a surcharge of 20 Euros per child. The distance allowance will be increased by three cents per kilometer from the 21st kilometer until 2023. Long-distance commuters in particular benefit from this. Finally, the employee lump sum increases from 1000 to 1200 Euros. Criticism came from the opposition, which described the relief as insufficient.