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Voigt: More business tax to stay in the east

Companies do not necessarily pay trade tax where they have a plant. Thuringia's CDU top candidate Voigt criticizes this. Minister President Ramelow speaks of 'extended workbench'.

- Voigt: More business tax to stay in the east

Mario Voigt, the top candidate for the CDU in Thuringia, will advocate to the federal government that a larger portion of the paid trade taxes remain in Eastern Germany. Currently, trade taxes incurred in factories and production sites in the eastern states are often paid at the headquarters of the companies. Voigt stated to web.de that this is due to the "model of the East as an extended workshop of the West."

Thuringia's Minister-President and top candidate of the Left, Bodo Ramelow, also lamented in the "Tagesspiegel" that the gross value added in Eastern Germany is still below average, "because we are usually the extended workshop."

Voigt argued that many companies in Eastern Germany with parent companies in Western Germany do use the new infrastructure, lower wages, and favorable locations. "However, the trade tax earned in the East then flows mainly to the West."

Voigt demanded that the federal government should recalculate the trade tax in the future. "These revenues are missing in the East. That's not fair."

Ramelow dismissed criticism of the economic policy of the state government, including that from the CDU, in the "Tagesspiegel." "We can now look back on 100 global market leaders in Thuringia, Griesson – de Beukelaer produces the 'Prinzenrolle' since 2020 in Kahla. The largest pizza oven in Europe is also here," he said.

Thuringia, like Saxony, belongs to the European Alliance of Semiconductor Regions. Chips from Erfurt are in every car rolling off the assembly line worldwide. He expressed the view that a more robust economy is developing from the diverse range of industries and ownership structures in Thuringia.

  1. Mario Voigt urged the Federal government to reconsider the distribution of trade taxes, arguing that a larger portion should remain in Eastern Germany due to the region's role as an extension of Western companies.
  2. In response to Voigt's criticism, Thuringia's Minister-President, Bodo Ramelow, highlighted the successes of the state's industries, stating that global market leaders and major manufacturers have established operations in the region, resulting in a more robust economy.

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