Autumn has come (October 2019)

Forecast of tax and social security revenues for 2019 - 2022

 The economic slowdown and legislative effects pull tax and social contribution revenues downwards. For this year, we reduce our June estimate by EUR 66 mil. During the next three years, revenues are expected to drop by EUR 700 mil. on average, thereof, the government stimulus is to reduce the general government revenues by EUR 300 mil. on average, each year. The overall economic downturn will also be marked by the weakening economic performance which will be seen in slack of domestic consumption and the labour market. On the other side, we expect slightly higher tax revenues owing to improved effectiveness of tax collections. The effective tax rate grows, in particular, in corporate tax and VAT revenues.