Saxony-Anhalt: Increase in trade tax revenue due to catch-up effect

Halle (dpa/sa) - According to the Association of Towns and Municipalities, the significant increase in trade tax revenue last year in Saxony-Anhalt is partly due to a catch-up effect from previous years.

Saxony-Anhalt: Increase in trade tax revenue due to catch-up effect

Halle (dpa/sa) - According to the Association of Towns and Municipalities, the significant increase in trade tax revenue last year in Saxony-Anhalt is partly due to a catch-up effect from previous years. "In terms of trade tax, for example, many companies had significantly reduced their advance payments in 2020 due to the pessimistic assessment as a result of the global corona pandemic," said a spokesman for the association. However, since the feared slump in profits did not materialize for many companies, higher taxes are likely to have been paid when the 2022 tax was assessed, he explained. The Corona aid paid was also taxed.

The municipalities in Saxony-Anhalt had received almost 35 percent more trade tax last year than in the same period last year. With 1.15 billion euros, the billion mark was exceeded for the first time, the State Statistical Office announced on Friday in Halle. 93 of the 218 municipalities reported the highest trade tax payments in the past ten years.

In view of numerous federal projects that have not yet been fully financed and due to the impending additional burdens in connection with the current collective bargaining in the public sector, the state's municipalities need every conceivable additional tax revenue, according to the spokesman. In addition, there would also be immense additional expenditure due to flight or inflation.

The Association of Municipalities is critical of the difference in per capita tax revenue between the eastern and western federal states, which is visible in a nationwide comparison. This leads to a greater dependence of the East German municipalities on state income from the respective municipal financial equalization.