Germany’s chem industry urges tax breaks for R&D

19 August 2009 20:34  [Source: ICIS news]

TORONTO (ICIS news)--Germany needs to match other countries in providing tax breaks for research and development (R&D) in order to help ensure the competitiveness of its chemicals sector, a top industry group said on Wednesday.

German chemical industry association Verband der Chemischen Industrie (VCI) said that firms should be allowed to deduct at least 10% of their overall R&D expenses from their tax liabilities.

In case of losses, firms should get a corresponding tax credit for those years, the group said.

BASF board member Andreas Kreimeyer, who heads VCI’s research, science and education group, said that especially in the current tough economic situation chemicals producers must be able to maintain spending on R&D.

He pointed to France, where government tax measures were supporting R&D with about €4bn ($5.6bn) each year, and called on Germany’s government to match this level of support.

Kreimeyer also warned the government against introducing laws that could hinder the development of nanotechnology in Germany.

According to the Frankfurt-based association, Germany’s chemical producers spent some €8.4bn on R&D last year, up 4% from 2007.

($1 = €0.71)

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