When a new top of the basic meeting of the Federation and the länder to Reform tax today, difficult negotiations are expected.

the lower Saxony Minister of Finance Reinhold Hilbers (CDU), showed little hope that it could come to an agreement. “All must bring a willingness to change, otherwise it will be nothing,” said Hilbers, the German press Agency. The German tenants ‘ Association warned of rent increases by the back door.

The Minister of Finance of the Federation and the länder come together in the morning in Berlin. The basic tax to. in the afternoon, the topic will be in the coalition Committee of the CDU, CSU and SPD

The property tax, with a revenue of 14 billion euros in the year, one of the most important municipal revenue sources. The Federal constitutional court had demanded due to obsolete bases a new regulation by the end of 2019.

Bavaria’s Finance Minister Albert Füracker (CSU) told the German press Agency, the beginning of February by the Federal Minister Olaf Scholz (SPD) presented key points to be reform, contrary to many other representation no agreement on a property tax model.

Scholz is seeking a consensus with all the countries. He wants to be used a so-called value-dependent model in which land values, age of buildings and the average rental costs. Bayern want a surface model in which the amount of Tax is oriented flat to the surface.

the lower Saxony Minister of Finance Hilbers, a highly simplified surface model. About more expensive and cheaper locations should be different with a corresponding multiplier rating. With the current draft of the new land tax, the CDU-politician was dissatisfied. “I believe that we are still far from reaching what we want to reduce bureaucracy.”

Bremen’s Finance Senator, Karoline Linnert (Green party) said the dpa: “All the parties Involved, it is clear that time is of the essence. By the end of the year, the Reform has to work.” A failure of nationwide to around 14 billion Euro a year in property tax revenue would be fatal. A constitutional Reform and, therefore, should be taken into account after the majority opinion of the current value of the property. There are differing estimates about the type and manner of determination of value and the related costs were.

The German tenants ‘ Association warned of rent increases. “I can hardly imagine that the basic pay tax after the Reform, as planned, neutral,” said Association Director Lukas Siebenkotten of the dpa. “Struggling cities have the opportunity to increase the business tax and the property tax, so that money comes into the Fund. You will benefit even more.” The basic tax rate increases, but the land at the end of the operating costs for the tenants. This could particularly Rent in urban areas are on the rise.

Siebenkotten was behind plans by the SPD, the levy of property tax on the service charges. “The key question in the Reform of the property tax is the whether you can be killed. I hope to have a rethink especially in the case of Union politicians from Metropolitan regions.”

The CDU-real estate expert, Jan-Marco Luczak made General reservations against Scholz’s plans. “There must be no disguised wealth tax, that won’t be to do with the Union,” he said of the dpa. “The more value-based elements there are and the more Rent will be taken into account, the more difficult it is to agree for the Union group, a Reform of the property tax.” Luczak for the surface model of Bavaria.

dpa

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Teodora Torrendo is an investigative journalist and is a correspondent for European Union. She is based in Zurich in Switzerland and her field of work include covering human rights violations which take place in the various countries in and outside Europe. She also reports about the political situation in European Union. She has worked with some reputed companies in Europe and is currently contributing to USA News as a freelance journalist. As someone who has a Masters’ degree in Human Rights she also delivers lectures on Intercultural Management to students of Human Rights. She is also an authority on the Arab world politics and their diversity.

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