Secretary General of Germany’s ruling Christian Democratic Union party (CDU)
Ronald Pofalla has announced his party’s plans to undertake an
extensive reform of Germany’s tax system during the next parliamentary term,
provoking unrest within his own party. Chairman Volker Kauder has called for order.
Breaching an agreed party directive to remain silent on future tax policy,
Pofalla has reported that consensus within the Union party is to undertake a
structural reform of the tax system. The first stage of the reform, to be implemented
this year, Pofalla reveals, is to reduce the volume of the tax burden by approximately
EUR3bn.
According to CDU Chairman Kauder, however, conducting the debate on future
tax reductions in public is proving severely damaging to the party’s election
chances in September.
Urging his party to present a united front, Kauder emphasised the importance
of refraining from engaging in public debates until the new tax concept has
been finalised – as is intended by Easter.
Eager to extol the virtues of the overhaul, key to delivering a simple, fair
and low tax system, Pofalla remains adamant, however, that details of the tax
reform will form part of the election campaign itself.