Finance minister presents proposals for tackling inflation burden on citizens

In the face of high inflation driven by rising energy prices, German finance minister Christian Lindner wants to relieve citizens with a tax cut of more than 10 billion euros, public broadcaster ZDF reports. “For many people, daily life has become much more expensive,” said Lindner while presenting his plans in Berlin. “We fear rising prices for gas and energy and food.” The minister proposed an increase of the tax-free personal allowance, changes in the tax rates as well as increases in child benefit and child allowance. The proposals by the minister from the pro-business Free Democratic Party (FDP) have not yet been agreed with coalition partners SPD and Green Party.

Following initial media reports in recent days before the minister's plans were officially announded, Lindner’s proposals were widely criticised for disproportionately benefiting high earners and lacking any sustainability component. The government has already introduced two relief packages for citizens faced with rising energy costs, including a temporary reduction of petrol and public transport prices.