FRANKFURT: German Finance Minister Olaf Scholz is supporting plans for a wealth tax his Social Democrats (SDP) plan to unveil, according to the Handelsbatt business daily.
Top members of the SPD, junior partners in the ruling coalition, will hold a meeting on Monday to discuss plans to reintroduce the tax, which was developed in a working group led by Thorsten Schaefer-Guembel, who chairs the SDP in Hesse state.
The plans predict revenues countrywide of up to 10 billion euros.
“I have closely worked with the SDP working group and I’m supporting the result to follow the Swiss model,” Scholz, running for leadership of the SDP, had said.
Switzerland is among a few developed economies that still implement a wealth tax, which is charged on real estate, securities, cash, cars, and art.
Andreas Jung, vice chairperson of the conservative benches in parliament, said Chancellor Angela Merkel’s conservative Christian Democratic Union (CDU) was against the move, Handelsblatt reported.
Scholz’s comments come in the wake of the government’s agreement to exempt most taxplayers from the solidarity tax, which was introduced following the country’s reunification.
Merkel’s government has incurred no new debt since 2014 due to an unusually continuous growth cycle, record-high employment, low interest rates and strong tax revenues.
A senior government executive told Reuters earlier this month that Germany is considering scraping its long-treasured balanced budget system to help finance a costly climate protection program with new debt.