Tax hikes imminent in the vicinity, according to IHK warning
In a recent statement, Markus Weinbrenner, CEO of the Industry and Commerce Chamber (IHK) Offenbach am Main, has highlighted the need for the observance of the principle of 'who orders, pays' in the context of the upcoming legal claim for afternoon care at elementary schools from 2026. This move comes as municipalities across the region grapple with the significant financial burden this legal claim poses, with potential negative impacts on local businesses.
The legal claim to afternoon care at elementary schools from 2026 is causing high investments at the municipal level, leading to far-reaching consequences for budgets and local businesses. The IHK Offenbach is particularly concerned about the potential financial implications for municipalities and local businesses, warning against further increasing the tax burden in the region.
The IHK Offenbach calls for a broad debate on the financing of municipalities, advocating for a reform of the trade tax to replace it with a municipal tax derived from income and corporation tax, with its own tax rate component. This, they believe, would lead to fairer taxation and more sustainable municipal financing.
The IHK also criticises the practice of the federal government and states delegating tasks to municipalities without providing sufficient financial resources. They urge that the principle of 'who orders, pays' should be strictly observed.
In the midst of international trade uncertainties, high energy costs, and growing bureaucracy, tax increases at the municipal level are described as "counterproductive" by Markus Weinbrenner. He demands that the principle of 'who orders, pays' should be strictly observed.
The IHK Offenbach is not alone in its concerns. Dreieich, the fifth municipality in the Offenbach district to consider increasing the trade tax, follows cities like Rodermark, Neu-Isenburg, Mainhausen, and Seligenstadt in this regard. However, the IHK has yet to release a specific statement regarding the proposed tax increases in Dreieich.
In a positive note, the IHK praises the early communication by Mayor Martin Burlon of Dreieich, which allows businesses to prepare for the changes in taxes. Michael Grunwald, IHK Vice President and an entrepreneur from Dreieich, commends this approach.
As the debate on municipal financing continues, the IHK Offenbach remains committed to advocating for fairer taxation and sustainable municipal financing, ensuring the continued growth and competitiveness of local businesses.
What implications could the legal claim for afternoon care at elementary schools from 2026 have on the finance industry, business, and local industries, given the potential financial burden it poses to municipalities? The IHK Offenbach has urged for the strict observance of the principle of 'who orders, pays' to ensure fairer taxation and more sustainable municipal financing.
