Before CSU Caucus: Söder Calls for Acceleration of Corporate Tax Reform - Bavaria’s Leader Pushes for Faster Corporate Tax Cuts by 2026
Bavaria’s Minister-President Markus Söder has urged the government to speed up planned business tax reforms. He wants corporate tax cuts brought forward to 2026 and immediate electricity tax relief for all citizens. The proposals aim to ease financial pressure on businesses and households sooner than currently planned.
The federal coalition has outlined a gradual reduction in corporate income tax, dropping it from 15% to 10% by 2032. But Söder, leader of the CSU, insists this timeline is too slow. Instead, he called for the lower rate to apply retroactively from January 1, 2026—two years ahead of the coalition’s schedule.
At the same time, Söder demanded a cut in electricity taxes for every citizen starting in 2026. Both measures, he argued, would cost under ten billion euros. To fund them, he suggested scrapping the controversial heating law, which has faced criticism for its financial burden on property owners. The push comes as businesses and households continue to face high energy costs. Söder’s proposals target immediate relief rather than waiting for the coalition’s phased approach.
If adopted, the changes would see corporate taxes fall earlier and electricity bills drop for all consumers by 2026. The total cost would remain below ten billion euros, with savings from abolishing the heating law covering the expense. The government has yet to respond to Söder’s accelerated timeline.
