The Mittelstand- und Wirtschaftsunion (MIT) is calling for greater flexibility regarding the coalition’s planned €1,000 tax relief bonus, warning that the current proposal is likely to fail. According to MIT chief Gitta Connemann (CDU), the subsidy could not become a financial burden for small and medium-sized enterprises (SMEs) and craft businesses.
Connemann emphasized that many companies are already operating near their capacity limits and that making additional payments is often unaffordable. Therefore, she stated that the bonus requires increased flexibility, both in terms of timing and scope. She proposed extending the payout period until 2027. Furthermore, she argued that the rules for tax and fee exemption needed to be expanded to cover overtime, extra work, and one-time payments. This adjustment would allow businesses to compensate employees for their efforts without incurring additional tax burdens.
The concern is that the employees should directly feel the benefit in their pockets, and there must be no new costs imposed on the companies. Otherwise, the MIT chief warned, the entire relief bonus initiative is in jeopardy.
