SHARE
COPY LINK

B

Wanted: 1,000 German tax collectors

Of all things the German government could be short of, tax collectors is not the one most people would expect - yet it is struggling to fill 1,000 specialist jobs after a system overhaul left it responsible for gathering car tax.

Wanted: 1,000 German tax collectors
Photo:DPA

At the time, it seemed like the perfect solution to a simple problem. Back in 2009, when the Federalism Committee met to discuss finance, it concluded that dividing car tax and a special insurance tax between state and federal bodies was a silly idea.

Much better, it thought, was for the federal states to collect the insurance tax (which is levied on insurance payments instead of value added tax) and for the federal government to take over responsibility for collecting car tax. That car tax pumps some €8 billion into the German economy each year.

But collecting car tax is tedious. Each year, 50 million tax notices and a further 8 million reminders have to be sent out – a mammoth task which will be taken over by federal bodies in July 2014. The problem is that they need twice as many employees than they presently have, to do the job.

In documents seen by the Süddeutsche Zeitung newspaper, Finance Secretary Werner Gatzer writes “Only 641 of a total of 1,771 positions have so far been filled.” The government had planned to fill the positions with staff who had previously worked in areas related to compulsory military service, which Germany abolished in 2011.

But the smooth transition that officials had been expecting did not materialize as many staffers did not relish the prospect of working in finance.

And although a statement reads “The prospect of continued employment in the federal service is very attractive to Bundeswehr employees,” it acknowledges that the recruitment of sufficient personnel “will not be achieved on time.”

New staff will have to undergo intensive training of between six and nine months. Gatzer has proposed to employ people through Vivento, an agency associated with Deutsche Telekom and which organized work for ex-Bundespost employees. But this could cost millions.

The opposition says the buck stops with finance minister Wolfgang Schäuble. “Mr Schäuble’s superiority is at odds with his ability to get his own affairs in order,” Social Democrat economic expert Carsten Schneider said.

The Local/kkf

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

BANKING

Card over cash? Why Germany is seeing a new payment preference

Cash has long been king in Germany, with many smaller retailers refusing to join the rest of the world in adopting contactless payment systems. But card-based payments are on the rise, as recent stats about Girocard use reveal.

Card over cash? Why Germany is seeing a new payment preference

Germany has long been a very cash-based country, occasionally to the dismay of frustrated tourists at the Döner shop.

A few German phrases express the people’s love of physical money. There’s ‘only cash is true’ – Nur Bares ist Wahres. Or Bargeld lacht, literally meaning cash laughs, but used to imply that cash is what’s wanted, similar to ‘cash is king’ in English.

But the classic German preference for cash appears to be evolving, as the use of girocards is growing, even for small transactions.

How are girocards being used?

Girocard, an ATM and debit card service offered by German Banks, was designed to allow customers to use virtually all German ATMs and, increasingly, to make purchases at businesses.

READ ALSO: Ask an expert – Why is cash still so popular in Germany, and is it changing?

Last year, consumers in Germany used their Girocard more often than ever before for cashless payments. A total of €7.48 billion payment transactions with the plastic card were counted – 11.5 percent more than in the previous record year 2022, according to figures published by the Frankfurt-based institution Euro Card Systems.

Whether at the bakery, petrol station or supermarket, customers are increasingly pulling out their cards at the checkout, even for smaller amounts. As a result, the average amount paid with the Girocard fell from €42.34 to €40.69 within a year. 

The rise of card payments in Germany

Contactless payment, which is possible with girocards and credit cards that have an NFC chip, got a boost during the Covid pandemic, as retailers promoted it for hygiene reasons. 

But the use of card payments has continued to grow in Germany since then, boosted partly by the increasing use of girocards.

Promoting the use of girocards, some German banks have expanded their cards’ functions: Sparkassen, Volksbanken, or Raiffeisenbanken offer girocards for the digital wallet, for example.

Banks want to continue upgrading the payment card with further applications. For example, a project is being tested which would add an age verification function to girocards that would be useful when a customer is buying cigarettes.

On the retail side, it’s clear why the Girocard is preferred to other debit options.

“We see that debit cards from international providers cost up to four times more,” Ulrich Binnebößel, Head of the Payment Systems & Logistics Department at the German Retail Association (HDE) told DPA.

What’s the difference between the Girocard and other debit?

The Girocard is a strictly German phenomenon. It can be seen as the latest iteration of the EC card, which was created to consolidate payment systems following the unification of former East and West Germany.

In 1991 different debit card systems, including Eurocheque guarantee cards from former West Germany and Geldkarte ATMs from former East Germany, were unified into Eurocheque cards.

Then in 2001, the Eurocheque system was disbanded, but German banks continued to use the EC logo for “electronic cash’” cards, or EC cards. In 2007, the German Banking Industry Committee introduced Girocard as a common name for electronic cash and the German ATM network.

Girocards are only issued and accepted in Germany, so if you want to get one of your own, you’ll have to join a German bank, and shell out those notorious German banking fees.

READ ALSO: Why it’s almost impossible to find a free bank account in Germany

Alternatively, you can get by with internationally accepted debit cards provided by a bank in your home country, or otherwise by joining an app-based European banking service like N26. 

But be warned, without the Girocard in hand, at some smaller retailers you may be told, “Leider nur Bargeld oder EC-Karte.

With reporting by DPA

SHOW COMMENTS