Germany faces 35 billion euros in tax revenues

The newspaper Handelsblatt said that tax revenues in Germany in the next five years will be 36 billion euros (42.47 billion dollars) less than previous estimates in May, mainly due to tax adjustments aimed at helping Europe's largest economy overcome the coronavirus crisis.

Referring to tentative calculations of interim tax estimates to be announced by Finance Minister Olaf Scholz on Thursday, the economic newspaper said that next year the government will receive about ten billion euros less revenue than previous estimates.

But the newspaper quoted a government source as saying that after 2022 things will start to improve.

It said the main reason for the decrease in revenue until the end of 2024 is changes in taxes and bonuses such as the childbearing allowance, which will increase next year. The government also cut sales tax.

As Germany faces its deepest recession since World War II, Scholz is working on a budget for next year. The minister told Reuters this week that more debt is needed to support the economy's recovery.