Controversial draft law: Klingbeil wants to abolish tax advantage for staff discounts

Federal Minister of Finance Lars Klingbeil (SPD) wants to abolish a tax advantage that applies when employees buy products from their own company at a discount. This is evident from the draft law for the planned tax reform. The "Welt" newspaper was the first to report on the plans. The state would save 240 million euros a year as a result.

Specifically, it concerns Section 8, Paragraph 3 of the Income Tax Act. This allows a tax-free allowance of 1,080 euros per year for discounts on goods and services that the employer produces or offers itself. For example, supermarket employees can shop at a discount, and employees of car manufacturers can get discounted cars.

The regulation is criticized, among other things, because only employees of companies that offer goods for normal use benefit from it. Güntzler: Hidden salary cut According to the Ministry of Finance, the CDU and SPD have agreed together to abolish the tax-free allowance. Nevertheless, there is criticism from, among others, Klingbeil's coalition partner, the CDU.

The abolition contradicts the federal government's goal of relieving citizens with small and middle incomes, said CDU finance politician Fritz Güntzler to the "Welt" newspaper. "On the contrary, it would amount to a hidden salary cut." In fact, the tax-free allowance should even be increased.

There is also criticism from the opposition. It is now to be feared that many companies will no longer give their employees discounts at all due to the bureaucracy, said Green finance politician Sascha Müller to the newspaper.