BERLIN (Reuters) – German auditors see scope for 30 billion euros ($33.95 billion) in savings if the government were to rein in tax concessions, a federal institute said on Tuesday.
“Of course, this also requires a certain amount of courage to take responsibility here,” said Kay Scheller, president of the Bundesrechnungshof, Germany’s federal audit institute.
“Measures that help to consolidate the federal budget are more urgent than ever,” Scheller added. “The Bundesrechnungshof does not consider relying solely on cyclical tax revenue to be sufficient.”
Germany’s last coalition government was toppled by infighting over the nation’s budget after a legal challenge blew a 60 billion euro hole in its financial planning.
The new government, made up of the conservatives under incoming chancellor Friedrich Merz and the Social Democrats of outgoing Chancellor Olaf Scholz, have agreed to expand tax concessions to benefit restaurants, commuters and purchasers of electric vehicles.
Scheller did not comment directly on the coalition government’s agreed plans.
Specifically, the institute proposed savings by abolishing tax relief for people who have tradespeople work in their homes, a measure introduced in 2006, and by bringing tax rates for diesel into line with petrol.
The Bundesrechnungshof is an independent authority that has an advisory role.
($1 = 0.8835 euros)
(Reporting by Holger Hansen, Writing by Rachel More,)
