Tax “Corona exemptions” spark a government uproar in Germany

German Economy Minister Peter Altmayer is pushing for more tax exemptions for companies affected by the Corona pandemic crisis, and he said in statements to the German newspaper “Wirtschaftswuche” that he is working to ensure that today’s major losses can become offset against previous profits and the tax can be refunded.

“We must not continue to weaken corporate capital,” said Al-Tamayer. Extending loss transfer is a suitable way to amplify this. “It will also reflect the strengths that companies enjoyed before the crisis, and so it will make sense in relation to the market economy and can be justified.”

Referring to the German Treasury Department headed by Olaf Schulz, a member of the Social Democratic Party, Altmayer said: “My coalition partner has had problems with this issue so far … I am working on expanding support and I hope that during the Christmas celebration, opinions will change, “he explains. Once the crisis is over, “we will certainly have to review public spending, and austerity should not be ruled out”.

It should be noted that the tax loss set-off options have been extended since the end of June last year with the second tax aid law to deal with the corona crisis. The carry-forward of tax losses for the years 2020 and 2021 has been increased to five million and ten million euros respectively; With a joint estimate of losses. In addition, a mechanism for assessing loss carried forward for the year 2020 was approved according to the 2019 tax return.

Meanwhile, Friday’s data showed that German industrial goods orders rose more monthly than expected in October. This gives hope that manufacturing in Europe’s largest economy started the fourth quarter of the year with a strong performance. In the automotive industry, demand is up 6 percent from pre-crisis levels.

The data published by the Federal Statistics Office shows that industrial goods orders are up 2.9 percent on an adjusted basis in light of seasonal factors, compared to Reuters’s forecast of a 1.5 percent increase, and after an increase adjusted by 1.1 percent in September before. .

Figures from the Ministry of Economic Affairs showed that domestic orders were up 2.4 percent on a monthly basis, while orders from abroad were up 3.2 percent. And eurozone contracts rose 0.5 percent.

The Federation of Machine Industry Companies in Germany announced on Thursday that the sector’s orders in October last year reached the same level as last year, before the Corona crisis. According to what the union announced, this is the first time these orders have not declined since the beginning of this year.

“The constraints and growing uncertainties resulting from the second wave of the Corona epidemic have not yet impacted order records in October,” said Ralph Fishers, Union chief economist in Frankfurt.

Orders from abroad reached the same level as this month of 2019 last October, while orders from home to machine and system manufacturers increased by 1 percent.

The total number of orders decreased in the period between August (August) and last October, the period when volatility decreased, and the percentage decrease in the total number of orders during this period reached 8 percent after price adjustment (real decrease) compared to the same period in 2019. It reached The rate of decline in orders from home to 5 percent, while orders from abroad were down 9 percent.

In light of the drop in demand due to the Corona crisis, the Union had recently expected production to decline by 17 percent throughout 2020, employing more than a million people for this export-oriented sector, and the sector was affected due to the growing isolationist policy in the international trade markets and the turmoil in the automotive industry.

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