Fri, 03 Jul 2026 Kyiv 02:22Berlin 01:22London 00:22 UKR / DE / EN

Coalition Unveils Reform Package: Tax Relief and Bureaucracy Cuts

The leaders of Germany's CDU, CSU, and SPD have agreed on a comprehensive reform package aimed at easing the burden on taxpayers and boosting the economy. The coalition committee's decision includes 34 measures.

Coalition Unveils Reform Package: Tax Relief and Bureaucracy Cuts
Photo: abendzeitung-muenchen.de

The coalition plans to relieve taxpayers starting in 2027. Measures include raising the basic allowance, child allowance, and child benefit, as well as flattening the tax progression. The coalition estimates the relief volume at around ten billion euros, which is to take full effect from 2028.

The relief is to be financed by tightening the so-called wealth tax. The flat tax rate on mini-jobs is also set to rise.

In the labor market, telephone sick notes will be abolished; from now on, a certificate of incapacity for work must be submitted from the first day of illness.

Source: Stadt München