Tax estimate for 2021 has been revised downwards significantly

Tax office, about dts
Tax office, about dts
The official tax estimate for 2021 has been revised downwards significantly.

Compared with the tax estimate from May 2020, tax revenues in the coming year were around 20 billion euros lower than expected, said Federal Finance Minister Olaf Scholz (SPD) on Thursday afternoon. According to the forecast, tax revenues this year will remain stable compared to the May tax estimate.

For the federal government there will be a shortfall in income of 2020 billion euros in 9,2 and additional income of 9,3 billion euros for the federal states. The municipalities' income will increase by 1,4 billion euros. According to estimates, a total of 717,7 billion euros in taxes will be collected in the current year. In the years 2021 to 2023, too, the tax revenue will be below the estimate of May 2020.

The working group adjusted its forecast for 2021 by -19,6 billion euros, for 2022 by -5,5 billion euros and for 2023 by -4,4 billion euros, it said. The forecast for 2024 remains stable, with additional income of 3,0 billion euros expected for the federal government. According to the Ministry of Finance, these are essentially due to lower EU payments. “The tax estimate shows that we have the finances under control. The shortfall in revenue is within the expected range, ”said the finance minister.

Unfortunately, the pandemic is not over yet, "economically the worst could be behind us for now," said Scholz.