Tax breaks that Germany plans to extend to offset the economic impact of COVID-19 will shave an estimated 11 billion euros ($12.4 billion) off fiscal revenues by 2026, according to a draft bill seen by Reuters on Thursday.
The bill, which is still under discussion within the government, would this year extend tax subsidies for shortened working hours, ensure pandemic-related bonuses remain tax free up to 3,000 euros and increase offsets for firms' current losses against past profits.
According to the draft, finance ministry experts estimate the hit to federal, state and local government tax revenues would be 2.6 billion euros over the coming 12 months and knock-on effects would raise that figure to just under 11 billion over the coming five years.
The draft is expected to be submitted to the cabinet on Feb. 16.
($1 = 0.8859 euros)
($1 = 0.8867 euros)
(Reporting by Christian Kraemer; Writing by Miranda Murray; editing by John Stonestreet)
