By Maria Martinez
BERLIN (Reuters) -The German upper house of parliament approved on Friday a first tax relief package worth 46 billion euros ($53.73 billion) from 2025 to 2029 to support companies and revive the country’s sluggish economy.
This was the last step for the package to be implemented following its approval by the lower house of parliament.
The package is the first in a series of expected measures from Germany’s new government to boost the economy, which could be facing a third consecutive year of contraction for the first time in its post-war history.
“With this, we are creating strong investment incentives, securing jobs and putting Germany back on a growth path,” German Finance Minister Lars Klingbeil said on Friday.
“We are making Germany as a business location more internationally competitive.”
The package includes measures such as favourable depreciation options of as much as 30% per year for three years to ease companies’ tax burden.
To encourage electric car purchases, buyers will be able to depreciate 75% of the purchase price in the year in which the vehicle is bought.
($1 = 0.8561 euros)
(Reporting by Maria Martinez, Editing by Miranda Murray)
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