To make saving more worthwhile, Finance Minister Christian Lindner wants to raise the so-called saver’s allowance in the tax return. It is to rise from currently 801 to 1000 euros for singles and from 1602 to 2000 euros for life partners, according to the draft of the annual tax law, which is available to the German Press Agency.
The savings allowance is an income tax exemption. Up to this amount, capital gains such as interest remain tax-free.
The measure is part of the coalition agreement between the SPD, the Greens and the FDP. The lump sum will be raised for the first time in 22 years, said the FDP politician Lindner of the dpa. “Anyone who saves money or invests in shares should finally be allowed to keep more of the net from the gross.” This also strengthens private pension provision and is particularly important in times of rising prices.