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German Finance Minister Christian Lindner on Friday announced additional tax cuts of almost 2 billion euros ($2.14 billion) for 2024 that are not yet included in the draft budget.
On Jan. 1 of next year, the tax-free basic allowance will rise by 180 euros to 11,784 euros. Taxable income that is below this subsistence minimum is not subject to income tax.
The child basic allowance, a tax credit for parents, will also rise by 228 euros to 6,612 euros, Lindner told the Bundestag parliament during a debate on the budget.
"This is additional tax relief for citizens in the order of around 1.94 billion euros," he said.
The government is thus following a constitutional requirement to adjust the tax-free minimum subsistence level on an annual basis.
($1 = 0.9348 euros) (Reporting by Holger Hansen, Writing by Maria Martinez)