Federal Finance Minister Olaf Scholz wants to abolish a tax concession, from the previously allegedly hundreds of thousands of workers benefit. It is about so-called non-cash benefits cards, with which companies are allowed to provide their employees tax-free a monetary reward worth up to 44 euros per month. They work like prepaid credit cards. The beneficiaries can shop with it almost everywhere.

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The Ministry of Finance justifies the abolition of tax exemption by stating that the cards are not contributions in kind from the employer, which may remain exempt from tax, but taxable cash benefits. It relies on a judgment of the Federal Finance Court.

The states of Bavaria and Saarland have objected to the Scholz plans. They want the popular reward to remain. Allegedly 350,000 workers in 15,000 companies are affected.

The SME Association of CDU and CSU (MIT) also opposes the project. The purchases with the cards would come according to studies largely the German retail benefit, it is said. If companies had to resort to vouchers, Amazon would benefit in the future, according to MIT.

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