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Erndtebrück rejoices: record trade tax revenue for 2025!
Erndtebrück is pleased about high trade tax revenue in 2025, mayor informs council about financial forecasts and measures.
Erndtebrück rejoices: record trade tax revenue for 2025!
The city of Erndtebrück can look forward to high trade tax revenue, as Mayor Henning Gronau announced at a council meeting. For 2025, the forecast revenue is estimated at an impressive 29.6 million euros. This is a significant plus compared to previous budget estimates.
Of the expected income, around 16.8 million euros come from one-off effects. Without these special factors, trade tax revenue is 12.8 million euros, significantly exceeding the original budget estimate of 6.9 million euros.
Financial package for new measures
In view of these positive developments, the municipality is planning a comprehensive financial package to provide additional resources. The measures planned for this have a total volume of 280,000 euros. The council is expected to decide on these proposals at today's meeting.
The importance of trade tax has increased significantly in recent years. In 2023, trade tax revenue in Germany reached a preliminary high of 75.1 billion euros, which corresponds to an increase of 6.9% compared to the previous year. There were already record revenues in 2021 and 2022, making trade tax a central economic factor for many cities and municipalities, such as tradetax.net reported.
Despite these positive figures, Helmut Dedy, general manager of the German Association of Cities, expresses concerns about the limited scope for additional municipal tasks. Classifying the medium-term development of tax revenues as worrying makes it clear that Germany may be facing stagnating economic growth.
Challenges for municipalities
The financial challenges should not be underestimated. In the first half of 2024, the overall budget of municipalities and municipal associations shows a financing deficit of 17.3 billion euros, as income of 168.4 billion euros does not cover expenses of 185.7 billion euros. Forecasts for trade tax revenues in 2024 and 2025 also indicate a decline, increasing the challenges for municipal finances.
The current discussion calls for municipalities to be granted more freedom to invest in order to sustainably improve the infrastructure and general conditions. The positive development in Erndtebrück could therefore be both a ray of hope and an impetus for further necessary reforms in municipal financial policy.