AfD Proposes Major Tax Cuts and Energy Policy Overhaul

Newsworm
Newsworm
with
AFP
April 12, 2026
The AfD parliamentary group unveiled comprehensive tax reform and energy policy proposals at their Cottbus conference. The party presented position papers addressing Germany's tax system, energy independence, and economic recovery. The proposals aim to reduce tax burdens on families and businesses while pursuing an alternative energy strategy that challenges current climate policies.
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AfD Proposes Major Tax Cuts and Energy Policy Overhaul
The AfD parliamentary group has called for fundamental tax reform and associated tax cuts. Germany has "one of the highest tax and contribution burdens worldwide," they argue. This stifles consumption, investment, and employment in the country. - AFP

The Alternative for Germany (AfD) parliamentary group has unveiled sweeping tax reform proposals and controversial energy policy changes during their strategic retreat in Cottbus, Brandenburg. The party presented comprehensive position papers addressing German tax policy, energy independence, economic recovery, and climate legislation at their weekend conference.

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AfD Tax Reform Proposals: Major Changes to Tax System

Raising Germany's Basic Tax-Free Allowance

The AfD has called for a fundamental overhaul of Germany's tax system, criticizing the country's "one of the highest tax and levy rates worldwide" as a significant barrier to consumption, investment, and employment growth. The party's economic position paper, adopted at the Cottbus conference, outlines specific tax reduction measures designed to stimulate the German economy.

The parliamentary group proposes raising the basic tax-free allowance (Grundfreibetrag) from its current level of just over 12,000 euros to 15,000 euros. This allowance represents the income threshold below which German citizens are not required to pay income taxes. The proposed increase would provide immediate tax relief to millions of German taxpayers.

Expanded Child Tax Allowance

The AfD tax reform package includes a substantial increase in the child tax allowance (Kinderfreibetrag) from approximately 9,700 euros for both parents combined to 12,000 euros. This represents a significant expansion of tax relief for German families with children, aimed at reducing the financial burden on households and encouraging family formation.

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Corporate Tax Cuts

The AfD's economic agenda includes reducing corporate taxes to an "internationally competitive level." Party officials argue that Germany's current corporate tax burden places German businesses at a disadvantage in the global marketplace. The proposed corporate tax reduction aims to attract foreign investment, prevent business relocation, and stimulate domestic economic activity.

The position paper also calls for comprehensive simplification of German tax regulations, reducing bureaucratic complexity for both individuals and businesses. The AfD justifies these wide-ranging tax reform proposals by stating that "Germany is in the most severe economic crisis in decades."

AfD Energy Policy: Nord Stream Pipeline and Gas Supply Strategy

In a controversial energy policy proposal, the AfD has announced its intention to reactivate the damaged Nord Stream gas pipeline from Russia. According to the position paper presented at the Cottbus conference, the party seeks to "further diversify the supply of gas and oil in Germany's interest, avoid new import dependencies, and enable the commissioning of existing supply routes such as the Nord Stream pipeline."

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The Nord Stream pipelines, originally constructed to transport Russian natural gas directly to Germany, sustained severe damage from explosive devices in September 2022. Currently, no official plans exist for pipeline repair or recommissioning. Since Russia's military attack on Ukraine, Germany and the European Union have implemented comprehensive economic sanctions targeting Russian President Vladimir Putin's government. Reactivating Nord Stream would generate substantial revenue for Russia through resumed gas sales to Germany.

Nuclear Energy and Fossil Fuels: AfD's Alternative Energy Vision

Beyond the Nord Stream pipeline proposal, the AfD advocates for reactivating nuclear energy (Kernenergie) in Germany. The party's energy platform explicitly supports continued utilization of coal and natural gas, while categorically rejecting any phase-out timeline for fossil fuels. This position marks a fundamental opposition to Germany's current Energiewende (energy transition) policies.

Climate Legislation Rollback: AfD Targets Renewable Energy Laws

The AfD parliamentary group proposes eliminating government subsidies for wind energy and solar energy projects across Germany. The party calls for the complete abolition of several key environmental and climate protection legislative acts:

  • Erneuerbare-Energien-Gesetz (Renewable Energy Act): The foundational law supporting renewable energy development in Germany
  • Netzausbaubeschleunigungsgesetz (Grid Expansion Acceleration Act): Legislation designed to speed up electrical grid infrastructure development
  • Klimaschutzgesetz (Climate Protection Act): Germany's primary climate protection framework law
  • Windenergieflächenbedarfsgesetz (Wind Energy Area Requirement Act): Regulations governing land designation for wind energy projects
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These legislative acts were originally introduced to advance Germany's climate protection commitments and facilitate the transition to renewable energy sources. The AfD's proposed repeal would represent a comprehensive reversal of German climate policy.

Cottbus Conference Details and Parliamentary Priorities

The AfD parliamentary group (AfD-Bundestagsfraktion) commenced their strategic retreat (Klausurtagung) on Friday evening in Cottbus, Brandenburg. The multi-day conference focused on establishing legislative and political priorities for the party's parliamentary work in the coming months.

Two comprehensive position papers were scheduled for formal adoption during the conference: the first addressing economic policy, tax reform, and energy strategy; the second covering pension reform and social policy issues. Party leadership scheduled a press conference for Sunday morning to publicly present the conference outcomes and detailed policy proposals to German media.

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