The association sees good approaches, but urges faster action.
The German Retail Federation for Textiles, Shoes and Leather Goods (BTE) generally welcomes the economic recovery and employment program presented by the German government. The package of measures contains important approaches to easing the burden on businesses and consumers. Now it is crucial to implement the announced reforms swiftly and to effectively relieve the pressure on medium-sized fashion retailers.
BTE President Mark Rauschen particularly welcomes the planned income tax relief from 2027 onwards and the announced reduction in bureaucracy. According to the association, both measures could boost consumer spending and relieve the burden on businesses. At the same time, the BTE points out that tax incentives only take effect after a time lag and will offer little short-term help to many retailers given their current liquidity and margin problems.
The association also welcomes the plans to reduce reporting obligations and documentation requirements. The goal must be to significantly reduce the bureaucratic burden on companies so that more resources are available for customers, employees, and business development.
The BTE, however, is critical of the planned increase in the flat tax rate for mini-jobs from two to five percent. This would further increase labor costs in the retail sector, even though mini-jobs play an important role, particularly in covering peak demand.
The association also considers the planned Sunday openings insufficient. The fact that longer opening hours are only intended for bakeries, confectioneries, and libraries does not do justice to the importance of brick-and-mortar textile, shoe, and leather goods retailers for revitalizing city centers.
The BTE therefore calls on the Federal Government and the Bundestag to implement the announced measures quickly, practically and with measurable relief effects.
