February 24, 2021

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Temporary unemployment costs the government 4 billion euros at the same time …

Temporary unemployment costs the government 4 billion euros at the same time ...

Temporary unemployment benefits cost the government € 4.3 billion last year. At the same time, tax revenues in 2020 fell by EUR 11.5 billion or 9.8 percent to EUR 105.2 billion. De Tijd and L’Echo write this on Monday.

Companies are making massive use of the system of temporary unemployment in the corona crisis. Usually companies have to meet strict conditions to use the system, but they are more flexible during the corona crisis.

On average, the National Employment Service (RVA) paid 514,000 employees per month temporary unemployment benefits in 2020. At its peak in April this was 1.2 million employees. For comparison: In 2019, an average of almost 100,000 workers received temporary unemployment benefits every month, which cost the government 367 million euros for the entire year.

At 4.3 billion euros in 2020, the cost price of temporary unemployment was almost the same as that of other unemployment benefits including early retirement benefits. The government spent almost 4.7 billion euros on it last year.

Less income

In 2020, tax revenues fell by 11.5 billion euros or 9.8 percent to 105.2 billion euros. This can be seen from figures from the Federal Finance Administration. They are thus falling back to the level of 2016.

The sharp drop in tax revenue is mainly due to the corona crisis recession and the partial shift that the federal government has granted for some taxes. In absolute terms, VAT income has been hardest hit. These fell by 4.3 billion to 27.2 billion because households were consuming less.

Corporate tax assessments fell by 3.1 billion to 1.3 billion. This is the amount companies pay on their annual corporate tax return. Advance payments decreased by 2.3 billion and excise taxes by 1 billion. Last week it became known that the withholding tax yielded less.

Some taxes yielded more. Withholding tax, the amount companies withhold from workers’ gross wages, brought in $ 671 million more.