For flat rates and allowances
Taxpayers’ Association calls for constant inflation adjustment
11/06/2022, 4:48 p.m
The inflation rate is above the 10 percent mark. Shouldn’t – for the sake of justice – tax allowances and lump sums also constantly increase? The taxpayers’ association sees it that way; the federal government’s envisaged relief for citizens is not enough.
Before the hearing of the finance committee on the 2022 annual tax law, the taxpayers’ association is calling for several tax allowances and lump sums to be adjusted more closely to inflation than previously planned. This emerges from a statement by the association to the Federal Ministry of Finance, which is available to the news portal “t-online”.
“With the Annual Tax Act 2022, individual lump sums and allowances are to be adjusted. In our view, this is overdue, but far from sufficient,” the paper says. Because the costs caused by the high inflation would still be significantly higher than the relief. “We are of the opinion that all lump sums in tax law should be checked regularly and adjusted to inflation and value development,” said the taxpayers’ association.
According to calculations by the association, for example, the already planned increase in the savings allowance from EUR 801 to EUR 1,000 per year would have to be EUR 100 higher. The same applies to the government’s plan to increase the home office fee from 600 euros to 1,000 euros.
“From our point of view, employees should be able to schedule all days of the year that they work from home,” demands the taxpayers’ association. “If, as with the distance allowance, a maximum of 200 to 220 days per year is assumed, then the amount to be applied at 5 euros per day would currently be 1,100 euros for 220 days.”
Do flat rates lag far behind inflation?
The distance allowance, on the other hand, does not appear in the draft of the 2022 Annual Tax Act. The taxpayers’ association is in favor of an increase to at least 45 cents – from the first kilometer. The flat rate is currently 30 cents for the first 20 kilometers and 38 cents for each additional kilometer.
“An increase is more than necessary, because the distance allowance has not been sufficiently adjusted to the increased prices for years,” says the paper. All employees benefit from the commuter allowance, regardless of whether they come to work by car, train, bike or on foot.
The association also criticizes the low income-related flat-rate for pensioners. Due to inflation, this should increase from the current 102 euros per year to 570 euros per year. “There is an urgent need for improvement here.”