Minister of Finance: Scholz wants to cancel benefits for hundreds of thousands of workers



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Germany finances

Scholz wants to cancel benefits for hundreds of thousands of workers

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Scholz wants to remove this tax advantage

Federal Finance Minister Olaf Scholz wants to cancel the tax benefits for so-called non-monetary cards. Hundreds of thousands of workers benefit from these bonus cards in Germany. The Union is against abolition.

Employees across Germany benefit from so-called non-monetary benefit cards. That must have an end, goes to Finance Minister Olaf Scholz (SPD). There is resistance in the Union until the end of the tax concessions.

BFinance Minister Olaf Scholz (SPD) wants to begin the end of employee loyalty cards. Scholz wants to exclude a tax concession that benefits hundreds of thousands of employees. These are so-called non-monetary benefit cards, which allow companies to send their employees, without tax, a monetary reward worth up to € 44 per month. This relates the "mirror".

The cards work as prepaid credit cards. The beneficiaries can buy it almost everywhere. The Finance Ministry justifies abolishing the tax exemption by stating that the cards are not in-kind contributions from the employer, which may remain tax free, but a taxable cash benefit. It is based on a judgment of the Federal Court of Finance.

The states of Bavaria and Saarland opposed Scholz's plans. They want the popular reward to remain. Supposedly 350,000 workers in 15,000 businesses are affected. The CDU and CSU SME Association (MIT) is also opposed to the project. The purchases with the cards would come according to studies largely the benefit of German retail, it is said. If companies had to resort to coupons, Amazon would benefit in the future, according to MIT.

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Scholz also confirmed to the "Augsburger Allgemeine" that his party links the continued existence of the coalition with the CDU and CSU to a full term of Chancellor Angela Merkel. "We formed a government with a chancellor, Angela Merkel," Scholz said.

An initial change at the top of the government with a choice of CDU chief Annegret Kramp-Karrenbauer gave Scholz a rejection. Merkel said she wanted to govern the full term, he said. "I have no reason to doubt her word."

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