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Virus rips hole in German tax revenues

No return to pre-pandemic federal intake until 2023

10 September, 19:54
(ANSA-AFP) - BERLIN, 10 SET - Germany will see a massive drop in tax revenue this year and next due to the impact of the coronavirus and won't return to pre-pandemic federal intake until 2023, Finance Minister Olaf Scholz said Thursday. Scholz told reporters that Germany, which often sees itself as the eurozone's star pupil on fiscal discipline, would be forced to take on new debt again next year before returning to the path of balanced budgets the following year. Europe's top economy will take in 275 billion euros ($327 billion) in federal tax revenues in 2020, down from 329 billion euros last year, Scholz said.

That amounts to nearly 54 billion euros less tax revenue than in 2019, and the shortfall will total 82 billion euros when taking combined federal, state and local tax income into account. In 2021, the federal government expects to collect 34 billion euros less than before the pandemic, and 15 billion euros less in 2022. (ANSA-AFP).

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