Germany’s environmental tax relief cut sparks outrage

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

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

The Mining, Chemical and Energy Industrial Union said reducing the rebate was
about filling financial holes and had nothing to do with the environmental

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.

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