German tax revenues have fallen again in view of the corona pandemic – unlike in previous months, but only slightly. There was a significant drop in income tax in particular.
After the strong slump caused by the corona, the state's tax revenues recovered somewhat in July. They were only 0.3 percent below the values of July 2019, according to the latest monthly report from the Ministry of Finance. One of the reasons for the better numbers is that many companies deferred tax payments in the spring are now due. In principle, the corona crisis continues to burden tax revenue, according to the report. The wage tax has decreased significantly, among other things through short-time work.
According to economists, Germany is slipping into the worst recession to date since the Second World War as a result of the crisis and massive restrictions. In June alone, tax revenues were 19 percent below the level of June 2019. Since the beginning of the year they have fallen by eight percent. For the year as a whole, the federal government is currently anticipating a tax decrease of almost ten percent. Pure municipal taxes are not included in the invoice.
The federal government had decided on aid worth billions for companies and employees, as well as tax relief – and an economic stimulus package to get the economy going again. This also had a negative effect on tax revenues. Recently, however, there have been cautious signs of an economic recovery, the report says. Industrial production is picking up, and foreign trade is also doing better again. The labor market is also recovering despite high numbers of short-time working.
In comparison with the same period in the previous year from January to July, revenue from aviation tax fell particularly sharply – there was a 72 percent decline. The income from the beer tax also fell by almost a quarter, probably due to the temporary closure of bars and beer gardens. On the other hand, there was a plus in the tobacco tax.
Due to the Corona crisis, the Bundestag had decided on two supplementary budgets, so that the federal government can take on a total of 217.8 billion euros in new debt this year. An extraordinary tax estimate is planned for September, on the basis of which Finance Minister Olaf Scholz intends to present the draft budget for 2021.
.