The federal government has launched important parts of the economic stimulus package. In the cabinet meeting of 12/6/2020, the Second Corona Tax Assistance Act was passed
The Second Corona Tax Relief Act is part of the so-called economic stimulus package. The tax aid package I has already come into force and regulates, among other things, the reduction of the sales tax from 19% to 7% for restaurants , but only for food, the drinks are taxable at 19% until 30.6.2020. This reduced tax rate also applies to the sale of any ready meals. From 01.07.2020, this sales tax will then be reduced to 5%. For beverages, the sales tax will be reduced to 16% as of 01.07.20.
However, not only the sales tax reduction has been decided but also changes in the motor vehicle tax.
For each child eligible for child benefit, a child bonus of 300 EUR will be granted.
The relief amount for single parents is increased for 2 years from 1,908 EUR to 4,008 EUR.
To promote the switch to electric drives, an extension of the 10-year vehicle tax exemption for first-registered, purely electric vehicles until the end of 2025 is planned. However, the tax exemption will apply until Dec. 31, 2030, at the longest.
Other measures are planned, which we will discuss in more detail with examples after the law goes into effect.