Voigt calls for tax incentives: rebuilding the economy in East Germany!

Voigt calls for tax incentives: rebuilding the economy in East Germany!

Thuringia's Prime Minister Mario Voigt (CDU) told the dts news agency on Monday that tax incentives for investments and research are necessary. According to Voigt, such incentives are “overdue” to promote economic dynamism in Germany. In East Germany in particular, he sees a need for action to support medium-sized businesses and industry. In his role as chairman of the Eastern Prime Minister's Conference, Voigt advocates for quick, reliable relief without additional bureaucracy.

These statements come in response to the relief for companies announced by Federal Finance Minister Lars Klingbeil (SPD). An “investment booster” was presented in the coalition agreement, which will enable companies to depreciate equipment investments at a degressive rate of 30% from 2025. This regulation is intended to apply until 2027 and aims to strengthen Germany's attractiveness as a location through tax incentives, such as Grant Thornton reported.

Planned tax reforms

Lars Klingbeil's planned draft law continues to provide for a gradual reduction in corporate tax, from the current 15% to 10%. This is to take place in several annual stages from January 1, 2028. Furthermore, a reform of legal form-neutral taxation is being sought, which could, among other things, examine the corporate tax liability for newly founded companies, regardless of their legal form, from 2027.

In addition, income tax changes are being planned that would reduce income tax for small and medium incomes in the middle of the legislative period. These reforms are part of a comprehensive package of measures to promote economic and digital development in Germany. According to the coalition agreement, work is also being done on targeted support for the games industry through tax incentives.

Economic policy guidelines

Many other measures are planned to promote sustainable transformation, particularly with regard to climate-friendly technologies. These include tax relief and innovation funding, as well as strengthening the municipal infrastructure. Voigt emphasizes that East Germany is particularly dependent on such impulses.

Digital developments should not be neglected either: a new Federal Ministry for Digitalization and State Modernization is being sought. The aim is to digitize tax and administrative processes and, among other things, to introduce e-invoicing as a standard. The implementation of these measures could be crucial for the future competitiveness of the German economy, as well Bunny mail reported.

In summary, the planned tax, economic and digital measures will take extensive steps towards a stable and dynamically growing economy in Germany. Voigt appeals to all those responsible to implement these necessary changes quickly and effectively.