Offenbach & Frankfurt reject change in trade tax calculation

The treasurers of the two neighboring cities of Offenbach and Frankfurt, Martin Wilhelm and Dr. Bastian Bergerhoff, say "No!" to plans by the Federal Ministry of Finance to change the calculation of trade tax. The finance department heads jointly reject the Federal Ministry of Finance's draft Growth Opportunities Act. This is because it would suspend the minimum profit tax at the expense of municipal finances. Despite the very different conditions, the two cities would potentially be hit hard; both the financially strong metropolis of Frankfurt and the small city of Offenbach are threatened with significant revenue losses as a result of the plan - at a time when prices are rising significantly.

"The implementation of the planned regulation would lead to considerable losses in municipal trade tax revenue for the municipalities as a whole. This would be a bitter and simply unacceptable setback for many cities and municipalities that are making considerable efforts to attract and retain companies," says Frankfurt's City Treasurer Dr. Bastian Bergerhoff. "Tax cuts at the expense of local authorities are unacceptable in view of the burdens placed on local authorities by rising costs, rising interest rates and the energy and transport transition to be implemented in local authorities in particular. If the law is passed, the cities and municipalities must be compensated accordingly," adds Offenbach's city treasurer Martin Wilhelm. Both remind us to adhere to the principle of connectivity: "If the Federal Minister of Finance wants to relieve the burden on companies, he can do so, but not at the expense of the municipalities' ability to act," the two finance directors agree.