German SMEs demand flexibility in €1,000 tax relief bonus plan
The German Association for Small and Medium-Sized Businesses (MIT) is calling for greater flexibility in the coalition's planned €1,000 tax relief bonus and warns that the measure risks failing. "For small and medium-sized enterprises and skilled trades, this relief bonus must not turn into a burden," MIT chair Gitta Connemann (CDU) told the Rheinische Post (Monday edition).
Many businesses are already operating at full capacity, she noted, making additional payments often unaffordable. "That's why the bonus needs more flexibility—both in timing and scope." The payout period should be extended until 2027, she argued. "Furthermore, the tax- and contribution-free regulation must be expanded to cover overtime, extra work, and one-time payments. This way, companies can reward performance without facing additional strain," Connemann said.
Employees would then feel the benefit directly in their wallets. Under no circumstances should the measure impose new costs on businesses. "Otherwise, the relief bonus is at risk of collapse," the MIT leader cautioned.
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