Bavaria seeks tax relief for farmers facing drought crisis

Bavarian Finance Minister Albert Füracker is pushing for tax relief and reduced bureaucracy to support the agricultural and forestry sectors facing a drought crisis. The state plans to submit a motion to the Bundesrat's finance committee regarding the annual tax law.

Key proposals include the introduction of a tax-free risk equalization reserve, which would allow farmers to build up reserves to smooth out income fluctuations caused by natural yield variations. Additionally, Füracker is calling for the abolition of double real estate transfer tax for land acquisitions made by recognized settlement companies.

To further assist small and medium-sized enterprises, the state is seeking to simplify documentation requirements, such as removing the obligation to submit a cultivation register and easing formal tax registration processes for reporting forest damage.