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German Tax Exemption Planned For Essential Staff Amid Virus

By Todd Buell · 2020-04-01 16:15:26 -0400

The German finance minister has said he plans to allow workers in essential industries to keep bonuses that they earn during the coronavirus pandemic crisis without tax, as a way of recognizing the difficult conditions they are working in.

In remarks to the German tabloid Bild am Sonntag that were posted on the German Finance Ministry's website Tuesday, Finance Minister Olaf Scholz said society should recognize the work of care workers, supermarket employees, truck drivers and hospital physicians. 

"Many employers have already announced that they want give their workers a bonus," he said.

Scholz added that he would announce that such a bonus up to €1,500 ($1,640) would be free of tax. Ministry spokeswoman Katja Novak said the ministry was working out the details of the plan with Germany's federal states. 

The Austrian government made a similar announcement March 26, saying it wanted to let workers in essential sectors collect bonus payments without tax

Germany and Austria, like much of Europe, have enacted strict lockdown laws that vastly limit citizens' movements and restrict public life to stop the spread of the new coronavirus, which causes the respiratory disease COVID-19. Grocery stores, however, are staying open to ensure that essential needs are met. These conditions are making it imperative for grocery stores to keep shelves full, creating an extra burden for their staffs. 

--Editing by John Oudens.

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