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Higher revenue: Giffey for higher secondary housing tax

Berlin's senator for economy warns against limiting savings. instead, she deems higher revenues necessary. She does not see potential only in the second home tax.}

Senator for Economic Affairs Franziska Giffey (SPD) argues for more money in the state budget.
Senator for Economic Affairs Franziska Giffey (SPD) argues for more money in the state budget.

State budget - Higher revenue: Giffey for higher secondary housing tax

Berlin's Economy Senator Franziska Giffey emphasizes the need for additional revenue sources in the budget discussion, despite the focus on savings. "In a tight budget situation, we also need to talk about the income side," said the SPD politician to the German Press Agency. "The question is: Who benefit from city services but contribute only little, while they could contribute more?"

"Another lever is the resident registration," she added.

One such lever is the second home tax. "We've seen a strong trend that many people here have a second residence - people who work for the federal government or companies that have a representation in Berlin but live elsewhere in Germany," said Giffey.

"Another lever is the resident registration. The census has found that Berlin has fewer residents than assumed - maybe that's not the case," argued the Senator. "We see this, for example, in the tight housing market. There are more and more people who want to live in Berlin. The question is: Are all of them registering here?"

According to Giffey, there's a lot to gain: "Through every person who isn't registered in Berlin, the city loses more than 3,000 Euro in federal funding," she said. "I think we need to talk about how we can attract back those who aren't registered." This is particularly relevant for students, who are new to the city but still have their official residence with their parents. "That's a huge loss for our city."

Giffey advocates for a welcome bonus of 100 Euro

She therefore supports the proposal for an incentive system. "Who registers their primary residence in Berlin receives a welcome bonus, for example, a one-time payment of 100 Euro," said the Senator. "That's an investment in the future because the money invested quickly returns more than tenfold through the census."

Giffey also proposes a solution for implementation: "With mobile citizen service centers, we could go to Berlin universities specifically at the beginning of the semester to help more students register here." Thinking about how to create an incentive system - not just for students - is worth considering.

Resident parking permits should be more expensive

The SPD politician sees great potential in the parking permit for residents, which currently costs 20.40 Euro for two years. "That's not even an Euro a month for taking a parking space permanently," she said.

"I'm for everyone in our city being as mobile as they need to be. But even if someone were to say these 20.40 Euro are not for two years but for one year, they would still be less than two Euros a month," so the Economy Senator. "That doesn't burden car drivers in our city, and it would be a concrete contribution to improving the financial situation of the state budget."

It's not about making life harder for car drivers. "It's about a fair deal. A moderate increase in this price, which is absolutely unique in Europe in its low price, can be justified in the current situation."

  1. Franziska Giffey, the Economy Senator of Berlin from the SPD party, emphasizes the importance of exploring additional revenue sources for the city's budget, despitefocusing on savings.
  2. Giffey points out that 'Second home tax' could be a potential lever, as many people in Berlin have a secondary residence, often working for federal government or companies with a representation in the city.
  3. In her argument, Giffey also mentions the resident registration, suggesting that the census might have underestimated the city's population, resulting in a loss of funding from the federal government.
  4. Raising the cost of resident parking permits is another proposal put forth by Giffey, arguing that a modest increase would not burden car drivers significantly and would contribute positively to the state budget.
  5. Giffey advocates for an incentive system to encourage students to officially register in Berlin, suggesting a welcome bonus of 100 Euro for those who do so as a potential solution.

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