Mainz – The Association of Municipalities and Cities (GStB) Rhineland-Palatinate assumes that the municipalities will receive more than 500 million euros less in trade tax due to the Corona crisis. Trade tax is one of the most important sources of income for cities and municipalities.
According to the association, the financial situation is exacerbated by the elimination of the amusement tax, deferrals such as sales and property tax or the reduction of income and corporate taxes. “The exact amounts cannot be foreseen yet,” said Horst Meffert from the GStB of the German Press Agency.
He would like to start a survey among the members soon to get a more precise overview. According to him, the losses will be even greater than in the financial crisis after 2008. At that time, trade tax collapsed by around 400 million euros.
In the Kusel district, for example, a large number of inquiries were received from commercial enterprises and solo self-employed persons, a spokeswoman reported, especially regarding immediate aid and implementation of the Corona measures.
Tax revenues are falling, but municipalities’ costs for public order and health offices are increasing. A separate protective shield is therefore urgently needed, said Meffert. After the Corona crisis, the public sector was an important pillar of the economy, for example in the form of construction contracts, added Agneta Psczolla, spokeswoman for the GStB. Then the money should be able to be spent quickly.
Rhineland-Palatinate should follow the Baden-Wurttemberg model, Meffert explained. There, a € 100 million program will be launched to compensate for the loss of tax in the municipalities and cities.