UPDATE 1-Germany agrees tax reform plan, with relief from 2012

(Adds detail on plan adoption and tobacco revenues)

BERLIN, Oct 24 (BestGrowthStock) – Senior members of the German
government agreed to a tax reform plan on Sunday to curb the
extent of a tax rise for energy intensive companies from 2011
by hiking tobacco duty, the ministers of finance and economy
said.

The government officials also agreed on a simplification of
the tax system from 2012 which would bring tax relief of 500
million euros ($695.7 million), the ministers said.

The plan, which parliament must debate before it can be
adopted, means large corporate energy consumers will not be hit
as hard by the environmental tax, known as the “Oekosteuer,” as
previously envisaged.

“What we are doing here is a package that should be seen as
a whole,” Economy Minister Rainer Bruederle told reporters,
stressing that the measures would only be adopted together.

The agreement on the plan follows calls from within
Chancellor Angela Merkel’s coalition for tax relief measures as
robust economic growth eases some of the pressure on Germany’s
public finances. [ID:nLDE69M06X]

The hike in tobacco taxes should bring additional revenues
of 200 million euros next year, rising to 500 million, 700
million and 800 million in 2012, 2013 and 2014 respectively, a
government official said.
($1=.7187 Euro)
(Reporting by Andreas Rinke, writing by Paul Carrel; editing
by Gunna Dickson)

UPDATE 1-Germany agrees tax reform plan, with relief from 2012