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Coalition Scales Back Power Tax Cut, Small Businesses Feel Betrayed

Postponing popular relief measures until after the summer recess undermines confidence in the coalition’s commitment to small businesses.

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Overview

  • The government has narrowed the planned electricity tax cut to industry, manufacturing, agriculture and forestry, excluding households and small enterprises.
  • Jörg Dittrich, president of the Central Association of German Crafts, says the U-turn on a universal power tax cut has caused a significant loss of trust.
  • Measures like abolishing the receipt requirement and extending Sunday openings for bakeries have been shelved until after the parliamentary summer break due to budgetary reservations.
  • Craftsmen and medium-sized firms face mounting pressure from rising social security contributions and labor costs without promised relief.
  • The Central Association is urging the government to reverse its decision on the tax cut and to prioritize dependable support for the Mittelstand.