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Monday, October 3, 2022

Germany announces plans to cut $10,000 million in inflation and tax aid – Lanza Digital

German Finance Minister Kristian Lindner / K Nietfeld / dpa

The German finance minister, Christian Lindner, on Wednesday announced a package of financial measures of up to 10,000 million euros to offset the impact of high inflation on citizens’ purchasing power, including tax cuts and increased aid to families.

In the presentation of the Inflation Compensation Law, the German minister explained that the measure was aimed at adjusting the fiscal impact representing inflation for some 48 million citizens in order to avoid additional fees, in addition to considering specific support measures for families. Is.

“The state should not enrich itself with inflation at the expense of citizens,” he insisted, adding that some 48 million taxpayers would be able to benefit from the measures, although especially high-income citizens are deliberately excluded.

As such, the minimum income threshold for filing tax returns has been raised to 10,347 euros from 9,984 euros in 2022, with a forecast of raising this limit to 10,632 euros in 2023 and 10,932 euros in 2024.

In contrast, 42% tax will apply to those earning 45% from EUR 58,597 and EUR 277,826 in 2022, while next year they will apply from EUR 61,972 and EUR 277,826 respectively, compared to 42% for 2024. From EUR 63,515 and from EUR 277,826 45% applied.

In its favour, the package of measures envisages a gradual increase in the allowance per child for each parent to a total of 264 euros between 2022 and 2024, until reaching 2,994 euros on January 1, 2024.

The German Federal Statistical Office (Destatis) reported on Wednesday that the year-on-year inflation rate was 7.5% last July, representing a decrease of one tenth compared to June’s 7.6% and 4 tenths compared to 7.9%. does. In May, it thus declined for two consecutive months, thanks to relief measures implemented by the country’s government, including discounts on public transport and fuel.

“The main reason for the high inflation is the increase in the prices of energy products,” said Georg Thiel, president of the Federal Statistical Office, after energy prices in Germany rose 35.5% in July, compared to 38% in June.

In particular, Thiel highlighted the “slightly downward effect on inflation” of the introduction of a temporary transport pass at a reduced price of 9 euros and a discount on fuel prices, in addition to the abolition of the surcharge EEG in July. ,

Thus, eliminating this surcharge on the bill led to a year-on-year increase in electricity prices to 18.1% in July from 22% in June, while the relaxation in fuel prices pushed up the price hike from 33.2% to 23%. was limited to. in June. Additionally, oil prices increased by 102.6%, including a 75.1% increase in gas.

On his side, food prices rose 14.8% year-on-year in July, after rising 12.7% in June. Price increases were reported for all food groups, including a 44.2% increase in the prices of edible fats and oils and a 24.2% increase in the price of dairy and eggs, while meat and meat products became more expensive by 18.3%.

Germany’s inflation rate, excluding energy prices, was 4.4% in July, while the main rate, which did not include food, was 3.2%.

World Nation News Desk
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