Tax reform 2026: Commuter allowance and gastro sales tax in danger?

Tax reform 2026: Commuter allowance and gastro sales tax in danger?

The federal government is planning comprehensive tax cuts and social reforms in the coming months, which could possibly come into force in 2026. The proposed measures include a higher commuter allowance, a reduction in VAT in the catering industry and an expansion of the mother's pension. However, these projects are characterized by uncertainty, as the empty coffers at the federal, state and local governments could make rapid implementation difficult. The current priority is to expand tax depreciation options for companies in order to stimulate economic growth again after a long recession. This was done by the South German newspaper reported.

However, the planned increase in the commuter allowance and the reduction in VAT in the catering industry are particularly controversial. A survey by the Süddeutsche Zeitung revealed massive resistance from the federal states in the Federal Council to these plans. Many states and municipalities are demanding that the federal government cover the costs of the associated tax losses, as they would have to bear a significant part of the financial burden. In this context, Saxon Finance Minister Christian Piwarz (CDU) criticized the federal government for passing laws that lead to reduced revenue or increased expenditure for the states and municipalities.

Financial concerns of the federal states

The tense budgetary situation of the federal states is underpinned by other finance ministers. Berlin's Finance Minister Stefan Evers (CDU) also expressed his concerns. SPD politician Andreas Dressel described the increase in the commuter allowance as a “disincentive” and pointed out that reducing VAT was not a priority. In addition, the Ministry of Finance of Mecklenburg-Western Pomerania emphasized that approval of the planned measures depends on the federal government's willingness to compensate for loss of revenue.

The coalition agreement stipulates that the sales tax on food in restaurants should be reduced to seven percent in 2026. Critics, such as the Baden-Württemberg Finance Minister Danyal Bayaz (Greens), accused the corresponding tax relief of only serving individual interests. Thuringian Finance Minister Katja Wolf (BSW) demanded that the costs of tax relief must be borne by those who decide on them.

Financial impact of the measures

The estimated shortfall in revenue from both measures amounts to around 23 billion euros over the entire electoral period, with states and municipalities accounting for around 12.5 billion euros. These large sums represent a significant challenge for budgets. In addition, the current tax estimate shows lower revenue than expected, which further limits the financial flexibility of the federal, state and local governments.

The situation in the debate about the tax plans remains tense. It is unclear whether both the increase in the commuter allowance and the reduction in VAT can be implemented; perhaps only one of the measures will be feasible. The ZDF editorial team reports that approval for implementation depends heavily on the federal government's willingness to ensure a fair distribution of costs.