German tax revenues fall 23.5% due to coronavirus pandemic

Germany, Europe’s largest economy, is facing its most severe recession since World War Two as measures to prevent the disease have hampered public life and business. (Reuters)

• Europe’s largest economy is facing its most severe recession since World War Two

BERLIN: Tax revenues of the German government and the 16 federal states declined by 23.5 percent in April from a year earlier to around $43 billion due to the coronavirus pandemic, the finance ministry’s monthly report showed on Friday.
Europe’s largest economy is facing its most severe recession since World War Two as measures to prevent the disease have hampered public life and business.
Early indicators show that the situation will likely remain difficult over the next months, the ministry said.
The revenue decline was most severe for income, corporate and air traffic taxes, the report showed. The pandemic’s impact on tax revenues were first visible in March but has now accelerated.
Finance Minister Olaf Scholz said earlier this month that the plunge in tax revenues will not stop the government from presenting a stimulus package next month to help companies recover from the coronavirus crisis.
Germany has approved an initial rescue package worth more than $825 billion to mitigate the impact of the coronavirus outbreak, with the government taking on new debt for the first time since 2013.