Porsche and BMW set business tax records

Leipzig. Despite all the bad conditions: Leipzig’s economy had a very good year. Recession? Uncertainty in world markets? Skyrocketing construction and energy prices? None of this is a brake on the city, which was on the economic fast track in 2023. In this regard, the mayor of the economy Clemens Schülke (CDU) was able to announce positive statistics and progress when presenting his report on Friday.

“The economic situation was reduced. “That’s why the results of 2023 were as unpredictable as this year’s Bundesliga champions,” Schülke said with satisfaction. Leipzig’s economic growth was boosted primarily by the automotive industry, but also by the new cosmetics industry with the introduction of The Dax Beiersdorf group (investment of 300 million, initially 200 new jobs). The group of biotechnology, the health sector and the IT industry (“as strong as the car cluster”) also contributed to the growth of the industry of IT is the digital company Unite on Johannisplatz, which has moved its headquarters from Munich to Leipzig.

Porsche and BMW increase the city’s income

Remarkable: Business tax revenues reached a record level of 608 million euros in 2023. In 2022, 412 million euros were brought into the city coffers. The plan was for 495 million euros. Finance Mayor Torsten Bonew (CDU) had already announced a positive trend in January. “This is proof of our economic strength and stability,” Schülke said. The current labor market data also contributes to the overall good results. Within a year, the number of workers subject to social insurance contributions increased to nearly 294,000 (until September 30, 2023). When it comes to the unemployment rate, however, there are seven before the decimal point. In the year before Corona of 2019 it was 6.3 percent.

According to Schülke, the main driver of the business tax was the car industry and the big manufacturers BMW and Porsche. Referring to the secrecy of the tax, the mayor of the economy did not give specific figures, but spoke about the large three-digit amount paid by the car cluster in taxes in Leipzig. “We are happy about it, but we also know that it is not a guaranteed success.”

25 million euros back to the economy of Leipzig

According to the CDU’s request and the city council’s resolution on Wednesday, the additional income that is not planned now should return to the business area of ​​Leipzig in the amount of 25 million. The Department of Economic Affairs wants to develop concrete plans for this by autumn. In this context, Schülke announced that they wanted to promote medium-sized businesses in particular and were already specifically planning to renovate the technical boarding school in Hüfferstrasse (Schleußig).

Looking ahead to the next few years, Schülke said that Leipzig’s economy was not focused on quantitative growth anyway. It’s all about quality growth and we won’t just rely on sectors that have been successful in the past. “We want to stand on several legs and place ourselves more broadly,” announced the mayor of the economy. The focus is mainly on groups where creativity is pushed forward. This includes the new residence in Bio-City (Alte Messe), where c-LEcta, the market leader in enzyme production, has celebrated its top party, but also the growing IT sector in general.

LVZ