Following the Bundesrat's approval of the so-called economic booster, Saxony's cities and municipalities are calling for the tax relief to be passed on in full. "It is now crucial that the tax compensation reaches and remains with the municipalities in full," said Mischa Woitschek, Managing Director of the Saxon Association of Towns and Municipalities (SSG). What is intended for the municipalities by the federal government should not be siphoned off by the state within the municipal financial equalization system, he said.
At the same time, the SSG praised the billions in tax relief for companies. "We also expect a lot from the investment booster for our Saxon companies," explained Woitschek. However, the cities and municipalities would not have been able to cope with the associated tax losses.
