energy costs
All Metal Boss for Commuter Reliefs
Overall metal boss Stefan Wolf. photo
© Marijan Murat/dpa
What should go into the government’s next relief package? For employers, the priorities are clear. The traffic light must lower taxes on a broad basis – otherwise there is a risk of distortions and job losses.
The president of the employers’ association Gesamtmetall, Stefan Wolf, has called for massive relief for commuters, companies and income tax because of the jump in energy prices. He also warned of numerous redundancies in the winter if the federal government were to leave the industry alone with the rising gas and electricity prices.
Wolf told the German Press Agency: “If you think about the commuters, you should, for example, suspend the mineral oil tax for a certain time.” The VAT on gas and electricity has been reduced, but that’s not enough. “If the tank discount ends at the beginning of September, then many will look around to see how the prices at the gas stations are going up.”
lower income tax?
The head of the automotive supplier ElringKlinger from Dettingen in Baden-Württemberg also emphasized: “We also need a reduction in corporate taxes.” The government must think about a reduction of 10 to 15 percent. “These are a good double-digit percentage that we need to have relief.”
Wolf called on the traffic light coalition to think about further steps in the event of a gas shortage. “If people are really hit hard in winter, the question is whether income tax will be reduced, at least temporarily.” Here, too, he gave a specific number: “In the case of income tax, you certainly have to think about 10 to 15 percent to really relieve people.”
The head of all metals also demanded that the government get down to business with the progressive tax reform. “What definitely has to be tackled is the so-called cold progression. The federal government is also involved there, at least I can see the beginnings.”
Companies are also burdened
Finance Minister Christian Lindner (FDP) wants to raise the basic allowance and the limit for the top tax rate in order to compensate for the so-called cold progression. It’s a kind of creep tax hike, when pay rises are eaten up by inflation, but still result in higher taxation. It is disputed in the coalition whether this is now a priority.
Wolf also stated that the gas surcharge was an “immense burden” for companies. “For the metal and electrical industry alone, the gas levy adds up to around one billion euros.” From his point of view it is clear: “There is already a relief announced.” The president of the employers’ association warned: “Of course, there are also a lot of jobs involved.” Many small and medium-sized companies are very heavily burdened.