Halle's 470% trade tax hike sparks backlash from struggling businesses
Halle (Saale) has raised its municipal trade tax multiplier to 470 percent. The decision aims to boost city revenues by around €4.8 million each year. However, local businesses and industry groups have voiced strong concerns over the impact on jobs and investment. The city council approved the tax increase to tackle a €150 million deficit. Officials project the higher rate will bring in an extra €5 million annually from 2026. Yet, the move comes as Halle's business tax revenues fell by 4.8 percent in 2025/2026, dropping to €104.2 million—far below Magdeburg's €170.1 million.
Criticism has been swift. Thomas Keindorf, president of the Halle Chamber of Skilled Crafts, warned that the hike adds unnecessary pressure during tough economic times. He highlighted the strain on companies already facing ownership changes or financial challenges. The new rate also puts Halle above the national average and higher than neighbouring Leipzig. This disparity could push businesses to relocate to nearby municipalities with lower taxes, risking local jobs and future investments.
The tax rise will bring Halle additional funds, but its effects on businesses remain uncertain. Companies now face higher costs, while neighbouring areas offer more competitive conditions. The city's ability to retain investment and protect jobs will depend on how firms respond to the changes.
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