Details on Tax Reform: Limited Relief Measures in Focus
The planned tax reform package includes 34 points, estimated to provide an annual relief of about 10 billion euros. Key changes include raising the basic allowance to 12,900 euros by 2028 and increasing the child benefit. However, tax progression is noted to be increasing because the lower limit of the middle-class zone remains at 17,800 euros.
The planned tax reform package comprises 34 points and aims to ease the tax burden for citizens. Experts estimate that these measures will bring an annual relief of around 10 billion euros.
A central point is the adjustment of the basic allowance, which is set to rise to 12,900 euros by 2028. Additionally, the upper limit for the top tax rate is being adjusted; this is scheduled to increase from 69,879 euros to 70,600 euros in 2028. There are concrete plans for families: the child benefit entitlement is set to increase from 259 euros to 272 euros per month by 2028.
Despite these individual reliefs, the details signal that tax progression is increasing in certain areas, as the lower limit of the middle-class zone remains at 17,800 euros.