Overview
- Markus Söder proposes moving the phased corporate tax reduction forward to July 1, 2026, contingent on sufficient fiscal space.
- Danyal Bayaz calls for a two-percentage-point cut as early as next year and urges dropping other planned measures such as a higher commuter allowance, a VAT break for gastronomy, and pension add-ons.
- The federal plan approved this summer lowers the rate from 15% to 10% in five annual steps beginning in 2028, and any acceleration would need national agreement and budget adjustments.
- The stated aim of the cuts is to increase firms’ liquidity and strengthen Germany’s competitiveness after a prolonged economic slump.
- Before the rate reductions start, the growth package provides degressive depreciation for machinery and equipment, incentives for electric-vehicle purchases, and higher research funding.