Federal government prepares new bureaucracy relief law

Another bureaucracy reduction law is expected to be passed before the end of this legislative period. A federal government working group has now presented 22 proposals for reducing bureaucracy.

This article is part of the special feature on bureaucratic madness in the skilled trades.

The German government intends to further reduce bureaucracy and introduce another relief law before the end of this legislative period. A working group commissioned by the government has now presented 22 proposed measures for the new law. It would be the fourth of its kind.

Most recently, the German Bundestag passed the Third Bureaucracy Relief Act in September 2019, disappointing the skilled trades sector. Holger Schwannecke, Secretary General of the German Confederation of Skilled Crafts (ZDH), accused the federal government of " lacking the will and courage " to reduce bureaucracy. He stated that the measures were "disappointingly piecemeal" and that no relief for craft businesses was foreseeable.

ZDH hopes for more effective law

The German Confederation of Skilled Crafts (ZDH) is now hoping for a more effective law and is cautiously optimistic that this time there could actually be relief for craft businesses. The association stated that the working group's proposals addressed some valid points . The ZDH itself had already submitted over 50 proposals in November 2020 for " untangling the regulatory jungle ." The majority of the measures proposed by the working group aim to provide relief for small and medium-sized enterprises.

Suggestions from the skilled trades sector: Here you will find the skilled trades sector's catalog of measures . This includes, for example, the electronic exchange of information between the tax authorities and businesses, faster and simpler status determination procedures for the self-employed, easier procurement procedures for young companies , and improvements to the regulatory framework for business transfers.

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Suggestions from the trades taken into account

The working group's plans also incorporate several proposals from the skilled trades sector. These include binding rulings from the tax office on tax-related matters within three months and greater use of cooperative tax audits, which should be conducted quickly and with minimal effort for all parties involved.

Also included in the trades' catalog of measures are the working group's proposals for simplified queries of domestic VAT identification numbers and the reduction of duplicate testing for exhaust gas analyzers. In addition, there are proposals for measures to improve planning and approval processes (five proposals) and to relieve the burden on citizens (three proposals).

Success for advocacy

The German Confederation of Skilled Crafts (ZDH) considers the proposals from the skilled trades, which were always developed with practical business needs in mind, a success in its advocacy efforts with policymakers. Some proposals from the working group are already being implemented, while others are still somewhat vague. This leaves room for further clarification. Furthermore, given the limited scope of new projects, the ZDH hopes for additional proposals to reduce bureaucracy . The skilled trades' catalog of measures provides a suitable basis for this.