Cash-strapped German city to levy sex tax

Swissinfo ^ | December 20 2003 | Reuters

[knighthawk]

BERLIN (Reuters) - The German city of Cologne is resorting to a "sex tax" on brothels to boost its revenues after national reforms left local authorities short of cash.

City authorities confirmed on Friday they were extending the existing "pleasure tax" -- already levied on casinos and amusement arcades -- to brothels, erotic massage parlours and table-dancing clubs.

Cologne expects to triple its pleasure tax revenues, Inge Schuermann, a city spokeswoman told Reuters.

"This is about making taxes fair but also because we are more than up to our necks in financial problems," she said, shortly after Germany's parliament approved the country's biggest welfare shake-up in decades.

Under Chancellor Gerhard Schroeder's reforms, taxes are to be distributed to ensure local authorities receive a greater share of revenues. But Cologne, Germany's fourth largest city, said that was insufficient.

"The government's reforms are clearly not enough to provide a solid financial basis for local authorities," Schuermann said.

Under Cologne's plan, pleasure tax gains will triple to three million euros (1.85 million pounds) in 2004, when the tax is extended to cover "dancers, displays of people and similar activities with the aim of achieving an erotic effect". Cologne's total tax revenue in 2002 was around 1 billion euros.

One worker at the city's Colonia nudist sauna said: "This will have a negative effect on businesses throughout the sector because we'll have to put up prices to compensate. Lots of businesses will complain about this and try to block it."

Schuermann said the city had received no formal objections since the idea was first made public in May.

[knighthawk]

Ping

[LibKill]

My title:

"Liberal A-hole City Fathers Resort to Pimping"

Flesh-peddling is not tolerable.

[niteowl77]

Just one more thing to pass on to the customer.

[curmudgeonII]

Is this sex tax the same as the sin tax my English teacher used to talk about?

[ServesURight]

How will this be enforced?

[LurkedLongEnough]

"dancers, displays of people and similar activities with the aim of achieving an erotic effect..."

Then the sexually-transmitted diseases effect...

Erotic - according to whom? :>)

[pepsionice]

Anyone that thinks Geman hookers will pay the government their due revenue...is smoking dope. A smart German hooker can pull in $70k per year...and never pay a dime to the German tax guy. Her pimp may walk off with $35k of the money...but she will never report this income to anyone.

This tax is aimed mostly at the casino traffic and anyone who 'entertains'...like rock concerts, comedians, etc. And the fascinating thing here....is rather than go back to the board and actually cut the budget...they simply passed more taxes. A typical German trait. The public never says a word...they just accept it. What a gullable society!

[Savage Beast]

They can increase revenues even more with some aggressive and titillating advertising campaigns. Wonder if they've thought of that.

[T'wit]

You get screwed once for the price of two.

[knighthawk]

LOL!

[John Beresford Tipton]

I hope they don't charge by the mileage.

[Old Professer]

It's more like puncturation.

[Wordkraft]

I dare ask...would this tax be on a per piece basis?