
Taxes on overnight accommodation are nothing new. Around the world dozens of cities, from Paris and Rome to New York, impose a similar ‘pillow tax’. What is different in Berlin – and will prove to be conveniently tricky to police – is the proposed business travel waiver.
To any devious observer it obvious that, come the summer, tourists wishing to avoid paying the tax will simply complete an official form, declaring that their visit is for professional reasons. Hey presto, 5% will be saved. Berlin won’t raise anything like the extra €25 million a year predicted by the city’s politicians. The ‘pillow tax’ will be a disaster. Or will it?
Berlin likes to portray itself as being upfront and open. But as in many parts of German life, little is as it seems on the surface. There is another agenda on (or under) the table, and it’s all about fiscal stimulus.
While encouraging economic self-restraint across Europe, Germany seems to have embarked again on a policy of domestic stimulus – by expanding its army of tax inspectors.
According to unconfirmed estimates, Berlin’s ‘pillow tax’ will need to be administered by as many as 750 new bureaucrats. These specialist ‘pillow-watchers’ will not simply scour the exemption forms for discrepancies. After 1st July at the Brandenburg Gate and in Potsdam, atop the Siegessäule and underground on Berliner Unterwelten tours, undercover inspectors – cunningly disguised in ‘leisure’ sandals and white socks – may well seek out the so-called ‘business’ visitors. Casual conversations will be initiated. Suspects will be asked if they happen to know – for example -- the GDP of Schleswig-Holstein. Claimants who cannot name the rates of both the federal Steuermesszahl and Berlin-Brandenburg Hebesatz taxes will be declared bogus businessmen/women. The possession of a pocket calculator will not be accepted as proof of business travel.
The ‘pillow tax lunacy’ scheme seems to mirror that of the ‘car tax idiocy’ programme. As has been reported in the press, the government’s decision to streamline the collection of motor and insurance taxes has necessitated the employment of a further 1,000 specialist tax collectors. Apparently 50,000,000 tax notices and a further 8,000,000 reminders must be sent out every year, a job so large that employee numbers will have to double.
Another example of bureaucratic inefficiency? No way. Once again Berlin has proven that it worries not about inconveniencing individuals in the name of the common good. And given the likely success of these two pilot schemes, rumour has it that similar Beamte-expanding programmes will soon be in train in the capital. Among those under consideration are a fiendishly-complicated fresh air tax (calculated on the number of leaves per tree per street), a Techno tax (10% added to the entry fee of Berghain, Tresor and Picknick) and a condom tax (you can work that one out yourself). At least 500 new government employees may well be required to administer each scheme.

Once again little is ever as it seems in Germany. Berlin’s tourists aren’t being used. No one should take at face value matters as taxing as these...or believe everything that they read online.
















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