Federal Finance Minister Christian Lindner's proposal to reduce or abolish the real estate transfer tax has little chance of success, writes Capital, citing reactions from the federal states. A survey that the magazine conducted among the state finance ministries shows a majority rejection. Several state finance ministers expressed incomprehension and criticism of the initiative. People are annoyed about Lindner's “exceeding of authority” because the real estate transfer tax is a state tax. Many countries lacked suggestions as to how the loss of revenue should be counter-financed in the event of a reduction or abolition.
Commentary by Frank Wojtalewicz
Mr. Lindner must have taken into account that the federal states would scream and scream murder if a federal minister dared to touch their sinecures. A nationwide discussion about real estate transfer tax is still right and important. The prime ministers and state finance ministers also know that additional property acquisition costs are an important reason why more and more families are refraining from purchasing home ownership. Even if you buy a modest condominium, you can easily end up paying the tax authorities a five-figure sum. In times of a structural housing shortage, the state should promote the acquisition of property instead of hindering it. Whether abolition, reduction or capping: It is to be hoped that other states will follow Bavaria's example and be open to reforming the property transfer tax.
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