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Supermarket checkout in Bavaria: By the end of the year, only five instead of seven percent VAT is due on food
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via www.imago-images.de / imago images / Action Pictures
Part of the government's stimulus package to cope with the corona pandemic is the VAT cut, which is limited to the second half of 2020.
This also has an impact on the level of federal and state tax revenues.
According to the latest monthly report by the Federal Ministry of Finance, the volume in September fell significantly again.
"The economic effects of the corona crisis continued to burden tax revenue," the Reuters news agency quoted from the report.
The tax revenue fell accordingly by 12.8 percent to 63.52 billion euros.
In the period from January to September 2020, the minus was a good 8 percent - with revenues of around 496 billion euros.
Child bonus reduces income tax income
The corporate income tax revenue was also a good quarter below the previous year's figure - a consequence of deferrals and lower advance payments by companies so that they have more liquidity in the short term.
There was also a significant decrease in wage tax.
"This resulted mainly from the payment of the first installment of the child bonus of 200 euros, which is paid from income tax."
In the first nine months, the federal budget showed a financing deficit of 72.5 billion euros.
Because in addition to the lower income, the Corona aid is also reflected in significantly higher expenses.
After the historic recession in the first half of the year, the Ministry of Finance is anticipating "strong growth" in the third quarter.
However, the recovery has recently lost some of its momentum.
"The further catching-up process is still associated with risks due to the dynamic infection process."
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apr / Reuters
