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Renewed increase in entertainment tax

August, 18th 2015

Gambling hall operators recently fall on hard times in many cities. Reason for that is a renewed increase of entertainment tax on slot machines. The relevant cities hope for increased revenues by this tax increase.

The Home Office already recommended households to exploit all sources of income to prevent a lack in government coffers. The entertainment tax appears to many municipalities as a good way to supplement the state coffers.

The last increase of entertainment tax in many cities is not very long ago. Last change was an increase by 1% whereas now there is an increase of 6% planned already.

So far, only the FDP has spoken out against a renewed tax increase. They find it too early for an increase as not only the entertainment tax was increased last year but also property tax and business tax were increased recently.

In some municipalities, the entertainment tax relates not only to gambling or playing slots, but also the opportunity for sexual pleasures in brothels, bars, sauna, nudist and swinger clubs and similar establishments.

Here, the tax is calculated by square meter on the respective establishments just like in gambling, where the amount of tax depends on the number of machines offered.

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