BERLIN, Nov 29: German Economy Minister Michael Glos has drawn up a plan to reduce the total income tax burden in Germany by some 25 billion euros ($32.35 billion), a magazine reported on Saturday.

Glos, who has repeatedly had his calls for speedy tax cuts rejected by Chancellor Angela Merkel and Finance Minister Peer Steinbrueck, wants relief to help “average earners”, according to German weekly Focus, citing a draft of the plan.

In the run-up to a party congress of her Christian Democrats (CDU) starting on Sunday, Merkel has come under increasing pressure from fellow conservatives like Glos to lower taxes and lend support to the economy, which is now in recession.

Merkel has said she sees no scope for tax cuts until after a federal election in September 2009. However, Peter Mueller, CDU state premier of Saarland, told weekly Der Spiegel the government needed to cut taxes soon.

“I think the people are hoping for tax cuts in this parliament,” Mueller said.

Germany has also been urged to contribute more to fiscal measures aimed at tackling the mounting economic malaise in Europe but the government has stood firm so far. In an interview with the Frankfurter Allgemeine Sonntagszeitung newspaper, Merkel reiterated Germany had no plans to follow Britain’s lead and cut value added tax (VAT).—Reuters