Germany's Federal Constitutional Court has ruled that the Solidarity Surcharge (Soli) remains constitutional, rejecting a challenge by six FDP politicians.

The court stated that the tax, introduced to address financial needs from reunification, is still justified due to ongoing fiscal demands.

However, it emphasized that the surcharge cannot be imposed indefinitely and must be reassessed as financial needs evolve.

The decision preserves an estimated €12.75 billion in annual revenue for the federal budget, avoiding a significant fiscal gap.

Critics, including business associations, argue the tax is outdated and burdensome, especially for companies and high earners who still pay it.

They urge the government to abolish the surcharge and implement broader tax reforms to boost economic competitiveness.

While the ruling provides clarity for now, debates over tax relief and economic policy are expected to intensify in Germany's political landscape.