BUSINESS German industry demands tax breaks and investment incentives

BUSINESS

German industry demands tax breaks and investment incentives

Xinhua

22:23, May 18, 2020

BERLIN, May 18 (Xinhua) -- The German government needed to adopt "immediate measures" to reduce the risks of the coronavirus crisis for companies and their workforces, the Federation of German Industries (BDI) announced on Monday.

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Exterior view shows the Volksbuehne theater building bearing the inscription "Leave no one behind" amid the new coronavirus COVID-19 pandemic, on May 16, 2020 in Berlin. (Photo: AFP)

BDI said that the government should significantly improve the amortization rules for investments to boost investments, for example, in digitization and climate protection.

"The aim must be to ensure the survival of companies as well as to support companies and their workforces with cyclical policy measures," said BDI President Dieter Kempf.

According to BDI, an economic slump of more than 6 percent in Germany this year due to the coronavirus crisis could "no longer be avoided" even if the virus was quickly contained and the restrictions eased.

Furthermore, BDI called for reduction of the tax burden on companies in Germany. To that end, income and corporation tax should be temporarily reduced as well, according to the federation.

"Increased innovative strength is a prerequisite for overcoming the recession quickly," BDI noted. Even during the crisis, the state and the economy in Germany had to keep the goal of investing 3.5 percent of gross domestic product (GDP) in research and development.

"The challenge now is to ensure the stability of companies and restore their ability to invest," stressed Kempf. "The solution to the problem lies in strong companies that get people back to work."


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