In Schweinfurt, the trade tax is at the heart of current austerity measures, as the city’s financial distress has reached a critical level with a budget shortfall of approximately 16 million euros. To close this gap, the municipality plans to raise the trade tax multiplier from 370 to 400 percent starting in 2026, an increase of around eight percent. Despite the weak economy, this measure will exacerbate industrial relocation, deepen the city’s disadvantages, increase the burden on businesses, and further weaken its economic standing in the long term. (mainpost: 07.12.25)
Business Tax as a Risky Budgetary Instrument
The state’s supervisory authority requires an approvable budget, which is why business tax is increasingly coming into focus for consolidation efforts. With the higher business tax, the city is shifting the burden onto businesses, even though structural expenditures are barely decreasing and fiscal leeway already appears limited.
The reference to supposedly moderate tax rates ignores reality. Industrial companies evaluate locations over years, and an increase from 370 to 400 percent significantly exacerbates existing disadvantages.
The city’s financial distress is hitting the wrong targets
The city’s financial distress has developed over a long period, but now particularly high-performing companies are coming under pressure. The higher business tax increases the burden on companies, while investments and innovations become less attractive.
Capital-intensive companies, in particular, can hardly offset this additional cost burden in the short term. This is precisely where the city loses credibility.
Industrial relocation is drawing closer
With the increase in business tax, Schweinfurt’s strategic assessment is changing. Industrial relocation rarely begins abruptly, but rather manifests itself through halted expansions, relocated machinery, or reduced research.
Other regions are focusing on relief and planning certainty. Schweinfurt is therefore risking a gradual exodus, even though industrial value creation forms the economic foundation.
Business Burden Continues to Increase
In addition to higher business taxes, other municipal levies are rising, resulting in a cumulative burden on businesses. This cost burden makes long-term planning difficult and weakens competitiveness compared to neighboring regions.
Businesses expect stable conditions. However, tax interventions during a downturn send the opposite signal.
Business Location Continues to Lose Substance
The Schweinfurt business location is already suffering from structural change and weak demand. Increasing the tax rate from 370 to 400 percent accelerates this trend instead of counteracting it. This also puts further pressure on the industrial sector.
Long-term budget stability arises from growth, not from increased burdens. Current tax policy jeopardizes precisely this foundation. (KOB)