Global Daily Tax News, German Coalition Agrees Tax Relief Package, (Apr 15, 2026)

Germany's coalition Government has signed off on a series of tax relief measures for households in response to the ongoing conflict in the Middle East.

The coalition Government agreed on April 12 to cut the mineral oil tax by approximately EUR0.17 per liter of fuel for two months. The measure is worth some EUR1.6bn.

German employers will also be allowed to pay a tax- and contribution-free relief bonus to employees of EUR1,000 in 2026. Such payments will be deductible for employers.

The Government coalition also agreed on April 12, 2026, to provide permanent tax relief measures for lower and middle income earners from January 1, 2027.