Overview
- The official tax panel’s spring estimate released Thursday cuts expected receipts by €17.8 billion for 2026 and €87.5 billion for 2026–2030, setting the baseline used by federal, state and local budgets.
- Finance Minister Lars Klingbeil blamed the Iran war’s energy‑price shock and weaker growth, with the federal government now facing €10.1 billion less revenue in 2027 and €9.9 billion less this year than last fall’s view.
- Klingbeil set a May 20 deadline for ministries to propose savings, with a full 2027 budget draft due in early July that may trim subsidies and adjust benefits such as parental and housing aid.
- To raise funds, the coalition is drafting a 2027 package that pairs income‑tax relief for most workers with higher alcohol and tobacco duties, tighter crypto taxation, and new plastic charges.
- A separate health bill flags a sugar‑sweetened drink levy from 2028 worth about €450 million a year for statutory insurers, which welfare groups support for prevention but say can hit low‑income households hardest.