Due to the increase in the basic allowance, almost 200,000 pensioners are no longer subject to tax.
Nevertheless, there is fundamental criticism of the taxation of pensions.
Berlin – This year 195,000 pensioners will no longer have to pay taxes.
Due to the increase in the basic allowance from EUR 10,347 to EUR 10,908, they are no longer subject to tax.
This is the result of a response from the Federal Ministry of Finance to a request from the left-wing faction in the Bundestag.
The editorial network Germany
reported first
.
Pension and taxes 2023: pension increase and increase in the basic allowance
Just like everyone else, pensioners also have to pay taxes on their income.
Anyone who receives a pension below the basic tax-free allowance of EUR 10,908 per year does not have to pay any taxes.
Every euro that is above the exemption amount is taxed.
Almost 200,000 pensioners are now exempt from tax liability.
However, the increase in the pension in July 2023 will mean that 87,000 pensioners will be subject to tax, since the pension increase will mean that they will be above the tax-free allowance.
Sören Pellmann, the left-wing faction's East German representative in the Bundestag, criticizes this and describes the taxation of pensions as a "great nuisance".
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Many pensioners also pay taxes in old age.
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© Imago
Pellmann: Pension taxation is incomprehensible for many pensioners
In principle, Pellmann welcomes the increase in the basic tax-free allowance.
However, an increase of 6.3 percent with an inflation rate of almost 9 percent is not sufficient.
"We need a major tax reform for pensioners and an increase in the basic allowance to at least 14,400 euros," says Pellmann.
Many pensioners could not understand the pension taxation, especially in East Germany.
"The traffic light must finally protect small and medium-sized pensions from the tax office."
As can be seen from data from the Federal Statistical Office (Destatis) from September 2022, in 2021 more than a quarter (27.8 percent) of all pensioners had a net income of less than 1000 euros a month.
3.4 percent of pensioners received basic security, almost 13 percent were employed, i.e. had a part-time job to supplement their pension.
A total of 17.6 million people were drawing an old-age pension.
List of rubrics: © Imago
