Dietzenbach's proposed rise in corporate tax facing criticism from IHK
In Dietzenbach, the Industry and Commerce Chamber (IHK) Offenbach am Main has expressed concern over a planned increase in the trade tax rate. The proposed hike, set to take effect on January 1, 2025, could significantly impact local businesses and the town's overall economic health.
The trade tax rate is set to rise retroactively from the current 405 points to 450 points. This increase, according to IHK CEO Markus Weinbrenner, would impose a noticeable financial burden on many businesses, potentially exacerbating the challenges they already face, such as rising energy costs, skilled labor shortages, growing bureaucracy, and a weak economy.
Weinbrenner emphasizes the importance of maintaining a balance between income and location attractiveness for businesses in Dietzenbach. He warns of the long-term consequences for the location, including decreasing value creation through possible relocations, fewer jobs, and lower tax revenues for the city, and deterrence of new businesses that would otherwise settle in Dietzenbach.
The IHK appeals to political decision-makers to look for savings potential in the budget instead of increasing the trade tax rate. They argue that an additional tax burden would only serve to worsen the situation, further straining businesses and potentially leading to a decrease in business investments, employment, and economic activity in the region.
One example of a business that could be affected by the tax increase is Georg Martin GmbH in Dietzenbach. The company faces a five-figure sum in additional costs, equivalent to an annual salary for a skilled worker.
However, it is essential to note that the precise consequences of the proposed tax increase would depend on factors such as the local economic structure, business sensitivity to tax changes, and competitive conditions relative to neighboring municipalities.
Despite these concerns, Weinbrenner acknowledges that many municipalities are under financial pressure. He emphasizes that this issue should be resolved at another level instead of placing additional burdens on businesses. The IHK calls for a reconsideration of the planned increase in the trade tax rate in Dietzenbach, urging for a more balanced approach that supports both the financial health of the community and the attractiveness of Dietzenbach as a business location.
The proposed trade tax rate increase could burden various businesses financially, potentially exacerbating existing challenges such as rising energy costs and a weak economy. Weinbrenner advises against this increase, suggesting political decision-makers search for budget savings instead, as an additional tax burden might deter businesses, lead to reduced investments, employment, and economic activity.
