AIn view of the sharp rise in energy prices, Federal Finance Minister Christian Lindner has proposed a significant increase in the commuter allowance from next year. The FDP leader said: “Many people have to commute to work every day. They are particularly affected by high energy costs. We should also relieve this working center of society in the future. I am open to significantly increasing the commuter allowance from next year.” The increase should take effect from the first kilometer and should not only apply to long-distance commuters.
Lindner said that the flat rate applies regardless of the means of transport chosen, and that it provides incentives for cost- and energy-saving behavior. “In this respect, there is no reason why an increase and expansion of the commuter allowance should be rejected.”
The push comes at a time when proposals for additional relief are rife. The background is price explosions for gas, for example. The problems could be exacerbated if Russia does not restart the Nord Stream 1 gas pipeline after maintenance.
“Not So Suggestion Bingo”
Federal Building Minister Klara Geywitz (SPD) called on citizens in the RTL/ntv program “Frühstart” to save electricity and gas in order to prevent a sharp increase in ancillary costs. Asked about a possible further heating cost subsidy from the federal government, Geywitz said: “It is very important to me that we do not bingo with suggestions during the summer break, but that we react to the foreseeable challenge with a targeted relief plan.”
In addition to further grants for low-income households, there is also a debate about continuing the 9-euro ticket in local and regional transport, which expires at the end of August. There are also proposals from the SPD, for example, to reward energy saving. Lindner’s proposal for a higher commuter allowance also comes in the middle of a debate as to whether a general speed limit should be introduced on German autobahns – the FDP continues to reject this.
By how many cents he wants to increase the commuter allowance and what that would cost, Lindner did not say. The flat rate is currently 30 cents per kilometer up to the 20th kilometer. In the spring, as part of a relief package, the coalition decided on a higher flat rate for long-distance commuters – these are citizens who have to drive 21 or more kilometers to work. Retroactive to January 1, they can count 38 cents per kilometer, three cents more than before. This applies until 2026.
The commuter allowance is part of the income-related expenses in the tax return. At the same time, the coalition had agreed to reorganize the lump sum in this legislative period and to take better account of ecological and social concerns.
In the traffic light coalition, Lindner’s proposal caused a divided response. SPD parliamentary group deputy Achim Post said: “Basically, in my view, an increase in the commuter allowance from the 1st kilometer can certainly be an instrument to create effective further relief for employees, especially in rural areas.” Group Vice Andreas Audretsch reluctantly. “Simply raising the commuter allowance would primarily benefit people who earn a lot and would offer no incentive to save more fuel. This means that the central requirements for relief measures are not being met in these difficult times.”
North Rhine-Westphalian Finance Minister Marcus Optendrenk (CDU) welcomed Lindner’s initiative: “In my view, it’s a good sign if the federal government is now moving here and thus supporting citizens with long commutes, primarily in rural and suburban areas .” The SME and Economic Union of the Union had demanded an increase in the distance allowance to 60 cents from the first kilometer. The “petrol price brake” of the traffic light is not enough at the back and front. For the period from June to August, the energy tax on refueling was reduced.
Criticism from transport associations
Lindner had spoken out against a new relief package this year – pointing out that many of the measures that had already been decided, such as the abolition of the green electricity system via the electricity bill, were still having an effect. The government’s draft budget for 2023 provides for the debt brake that was suspended during the corona pandemic to be included again. In the draft, funds of around ten billion euros have been set aside for relief.
Transport associations were critical of a higher commuter allowance. “After the tank discount, the next billion dollar gift for motorists,” said Dirk Flege, Managing Director of the Pro-Rail Alliance. 80 percent of the commuter allowance goes to drivers.
The traffic policy spokesman for the Verkehrsclub Deutschland, Michael Müller-Görnert, called an increase in the flat rate socially unfair. Lower income groups, who are hit hardest by rising energy and fuel prices, would not be relieved with a higher commuting allowance because they pay little or no tax. “The federal government should therefore switch the distance allowance to a mobility allowance that is independent of income. Everyone benefits, especially households with lower incomes.”
