Bavaria will ban the face covering, which only leaves a woman's eyes on show, in places like schools, universities and any government buildings like town halls.
"Concealing your face goes against [the] culture of communication," said interior minister Joachim Herrman.
He said Germany has a culture of "open communication with one another" because it was the "democratic understanding of Christian values".
The politician added: "Communication happens not only via language but also via looks, facial expressions and gestures.
"It forms the foundation for our interactions with each other is the basis of our free and democratic order.
"Concealing your face goes against this culture of communication."
Schools would be a focus of the proposals, the minister said, as he stressed that children "must be able to gauge the reaction" of adults.
The ban is expected to be approved in the state parliament by late Spring.
