Halle (Saale) hikes trade tax to 470%, sparking business backlash
On Wednesday, the city council of Halle (Saale) approved a rise in the municipal trade tax multiplier to 470 percent, narrowly endorsing the city administration's proposal. According to the draft resolution, the increase is expected to generate an additional €4.8 million annually for the city's coffers. The new rate remains above both the national average and that of neighboring Leipzig, where the multiplier stands at 460 percent.
The Chamber of Skilled Crafts has criticized the move. "At a time when the economic climate is the most challenging it has been in years, businesses are being burdened with extra costs," said Thomas Keindorf, president of the Halle (Saale) Chamber of Skilled Crafts.
The hike raises questions for many companies about why they should continue investing in Halle and safeguarding jobs when neighboring municipalities offer significantly more favorable conditions. The same concern applies to businesses in the midst of ownership transitions.
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