With garbage and waste water charges higher

Soon, higher fees for waste disposal?
The German City rejects the coalition agreement before it is finished: It is a formulation of taxation for municipal garbage trucks make - and rinse four billion euros in the budget.

Berlin. Citizens threatened by the plans of the CDU and FDP significantly higher fees for garbage and waste water disposal. The prospective partners in government want to tax local businesses in the future as well as private providers. This is clear from a draft coalition agreement. Local companies and organizations warned on Thursday against a "rip off" and dramatically increasing the burden on citizens through the back door. According to the tenants' association threatens more per household per year cost of 150 €.

FDP and private waste disposal reported fears in terms of costs as "scaremongering" back. The private provider also said to be stable disposal fees.

The draft of the coalition agreement states: "We seek a level playing field of municipal and private providers in particular in the sales tax to save jobs and to enable investment." This would allow the VAT exemption for municipal enterprises practically eliminated, costs are likely to be passed on to citizens. An equality could also mean that both municipal and private providers can take advantage of the tax privilege.



According to the Financial Times Germany, the plan could be estimated to be flushed four billion euros in cash from federal and state governments. The fees for waste and wastewater could increase by an average of twelve to 20 percent if the tax is a privilege. There are also experts who provide revenue for the state of doubt and assume even more stress.

Private collectors push for more competition

The disposal of waste water and domestic waste in Germany sovereign functions, which are among the core functions of public interest. Because it serves the common good, are communal enterprises are exempt from VAT - in the garbage and the waste water completely, the water is only half the tax due. For municipal enterprises may deduct the value added tax as the purchase of materials and equipment not.

Private collectors push for more competition. The European Court cases are pending. The FDP expects the new rules more efficient. It will result in the disposal fees are not permanently rise. Local companies could also argue with equal treatment of the deduction.

The Cities, warned there would be a sales tax liability, would face the people with much higher refuse and waste water charges. Public companies that competed with the private sector are already fully taxable.