Germany's environmental tax relief cut sparks outrage
Germany's proposals to reduce the environmental tax relief has sparked outrage from industry and unions which they believe will affect the economic recovery
German draft law to reduce environmental tax reliefs next year has angered
businesses and unions, who believe it will endanger the economic recovery of the
country.
The German finance ministry proposes to reduce the current environmental tax
relief to 80% from 95% in 2011. It also proposes to reduce it further, to 60%,
in 2012, reports
tax-news.com.
The Mining, Chemical and Energy Industrial Union said reducing the rebate was
about filling financial holes and had nothing to do with the environmental
agenda.
Fears have been raised by companies that Germany will lose its
competitiveness and the country could see a mass exodus of business if the
changes are to go through.
The tax reform is set to generate €1bn (£829m) in 2011 for the German
government and circa €1.5bn in 2012.
Further reading:
Taxman
unveils firms’ avoidance schemes disclosures
UN
report recommends accounting rules be used to safeguard biodiversity
Global
business invests in carbon accounting