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The Federal Ministry of Finance wants to relieve taxpayers in the coming year more than previously planned. The basic allowance, i.e. the income up to which no tax has to be paid, is to increase by 561 euros to 10,908, according to sources in the Federal Ministry of Finance on Monday. The child tax allowance should therefore be increased by 404 euros to 6024 euros. The "image" had previously reported about it. In 2024, the tax-free allowance for around 48 million taxpayers is set to rise again.
The Ministry of Finance is thus going a step further than originally planned. In mid-September, the cabinet decided to raise the basic allowance to EUR 10,632 – the new value is therefore EUR 276 higher.
Lindner explained to the "Bild": "If the standard rate of citizen income increases in January, then the basic allowance for wage tax must also increase. Welfare recipients and working taxpayers alike deserve fairness.”
The background to the tax relief is the high rate of inflation. Higher inflation rates reduce the purchasing power of consumers because they can afford less for one euro. They also lead to the so-called cold progression. This is a kind of creeping tax increase: people continue to pay high taxes even though purchasing power is falling due to inflation.
