The German government still intends to pass a tax relief law this month, despite the Cabinet not agreeing to do so on Wednesday.
Chancellor Olaf Scholz said the coalition government "will pass the Growth Opportunity Act this month" during a visit to the western city of Dusseldorf.
Contrary to plans, the German Cabinet did not pass the act suggested by Finance Minister Christian Lindner that encompasses a legislative package with tax policy measures that are supposed to relieve the economy by around €6.5 billion ($7.1 billion) annually.
The act aims to relieve companies in view of the current economic challenges.
Family Minister Lisa Paus blocked the plan in order to get more money for the basic child allowance, which is supposed to make it easier for families to receive state benefits.
