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German sawmill sector embraces new tax incentive plan to boost the construction sector

Posted on August 29, 2023 |

The German Timber Industry Association (DeSH), endorsed the Federal Government's tax incentive plan aimed at revitalizing the country's struggling construction sector.

The initiative introduces a degressive depreciation allowance to stimulate construction activity and foster investment in the industry.

Amid a decline in German house construction, the plan seeks to counter the current housing shortage and bridge the gap from the annual target of 400,000 new homes.

The substantial depreciation rate of 7% within the initial 4 years offers a glimmer of hope amidst issues like high-interest rates, escalating construction expenses, and ongoing inflation.

With a sharp decline in lumber demand, numerous companies are already implementing production cutbacks of up to 40% as they adapt to changing market dynamics.

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