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Ifo Study Calls for Targeted Tax Cuts After Firms Decry High Burden

The institute warns that G7‑leading tax levels raise costs, reducing Germany’s appeal.

Overview

  • In the survey, nearly 83% of companies say taxes and levies on employees are a strong or very strong burden.
  • About 72% name the municipal trade tax as a major strain, and 68% point to energy-related charges.
  • Firms prioritize relief via lower income tax and electricity tax, while Ifo says the scheduled cut in the corporate rate to 10% from 2028 to 2032 comes too late and in small steps.
  • The analysis cites OECD comparisons showing Germany leads the G7 in both corporate taxation and labor-related levies.
  • Ifo surveyed 1,705 companies, including 1,358 family businesses, from September 8 to October 17 in research commissioned by the Stiftung Familienunternehmen.