Tax Amendment Bill 2003 Passes <I>Bundesrat</I>

The Bundesrat has accepted the Tax Amendment Bill 2003, the least controversial of the tax bills presently in the legislative pipeline. Its entry into force for 2004 is now certain.

The Bundesrat gave its all important assent to the Tax Amendment Bill at its sitting on November 28. This bill is the least controversial of the various tax bills presently in the legislative process, probably because most of its content is technical rather than policy. Its provisions as follows will generally take effect on January 1, 2004:

• The present restriction on the input tax deduction on cars used for both business and private purposes to 50% of the tax actually paid will be dropped. Cars used for at least 10% on business will thus rank for full input tax deduction although the private use will be fully taxed as a chargeable output.