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Germany needs to adapt tax brackets to inflation, minister tells paper

·1-min read
FILE PHOTO: Germany's Free Democratic Party (FDP) leader and Finance Minister Christian Lindner addresses the media at the Chancellery in Berlin

BERLIN (Reuters) - Germany needs a mechanism that automatically adjusts income tax thresholds to inflation like in other European countries, German Finance Minister Christian Lindner told a newspaper.

"If 40,000 euros this year only have a purchasing power of 36,000 euros next year, that sum shouldn't be taxed as if it were still 40,000 euros," Linder was quoted as saying by Munechner Merkur in its Tuesday edition.

Inflation in Germany is currently running at around 8% due to soaring food and energy prices.

"We should sort this out legally," Lindner said.

(Reporting by Sarah Marsh; Editing by Lisa Shumaker)