AfD Calls for Urgent Reduction of Bureaucracy and Tax Burdens on German SMEs

On January 27, 2026, the AfD faction in the German Bundestag issued a call for immediate measures to reduce bureaucracy and tax burdens for small and medium-sized enterprises (SMEs), which constitute over 99% of all businesses in Germany. Recognizing that SMEs are crucial for job creation, the AfD highlighted the sharp increase in insolvency rates since 2021, driven by rising energy and financing costs.

The AfD proposed a comprehensive bureaucracy reduction law designed to systematically review and streamline reporting obligations, eliminate non-safety-related reporting requirements, and standardize digital administrative processes tailored for SMEs. They also called for the abolition of the receipt obligation and sought legal clarification to exempt SMEs from obligations arising from the supply chain due diligence law.

On the tax front, the faction urged an annual reduction in corporate tax by one percentage point starting in 2026 and the restoration of the cash accounting method in VAT law for SMEs. To ease energy cost pressures, a permanent cut in network charges was proposed. The AfD also requested a report by the end of 2026 to assess how effectively these reforms are implemented.

These proposals reflect heightened concern over the financial struggles of SMEs amid elevated energy prices and regulatory burdens, aiming to promote their sustainability and economic growth through targeted legislative reforms.