Giffey calls for fair cost distribution for commuter allowances and restaurants

Giffey calls for fair cost distribution for commuter allowances and restaurants

The discussion about tax relief for the catering industry and commuters is gaining momentum. Berlin's Senator for Economic Affairs Franziska Giffey (SPD) has clearly positioned herself in favor of the planned increase in the commuter allowance and emphasized that this must not come at the expense of the state budget. It underlines the need to make large investments in order to relieve the burden on the economy and stimulate the economy. Giffey sees the catering industry as an important economic factor, especially after the burdens caused by the pandemic.

As part of the discussion, the federal government plans to increase the commuter allowance by 8 cents per kilometer from the current 30 cents. This measure is intended to help reduce the financial burden on commuters. At the same time, the VAT on catering meals will also be reduced from 19% to 7%, which is also seen as a support for the industry. These tax adjustments could burden the state treasury with up to 23 billion euros by 2029. A significant portion of these costs, around 12.5 billion euros, would fall on states and municipalities, which raises concerns among the states' finance ministers.

Financial challenge for the countries

In North Rhine-Westphalia in particular, Finance Minister Marcus Optendrenk brought the “cause connection” into play in the coalition agreement. He demands that the federal government be held responsible for financing its measures. Berlin's Finance Senator Stefan Evers and Hamburg's Finance Minister Andreas Dressel express a similar view, both of whom have concerns about the financial burdens caused by the planned measures. However, approval for Giffey's proposals comes from Bavaria, where Finance Minister Albert Füracker considers an increase in the commuter allowance to be necessary.

The planned changes, which are due to come into force on January 1, 2026, could face resistance in the Federal Council, which could make implementation more difficult. However, there is broad support among the federal states' finance chiefs for tax incentives for investments, a reduction in corporate tax and a reform of the income tax. In this context, Giffey calls for the relevant laws to be implemented quickly and emphasizes the importance of the federal government's planned special fund of 500 billion euros for infrastructure investments.

conclusion

The controversies surrounding the financial burdens and the associated measures highlight the challenges facing both the federal and state governments. It remains to be seen whether the upcoming legal changes can be passed in the planned form or whether compromises will be reached that will place the financing of the measures on a broader basis.

sueddeutsche.de reports that Giffey underlines the importance of gastronomy in the German economy, while merkur.de highlights the financial challenges associated with the planned tax adjustments.