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Berlin Faces €886 Million in Tax Arrears with Half in Enforcement

Understaffing at specialist offices has stalled tax recovery, prompting SPD calls for a strengthening plan from Finance Senator Stefan Evers.

Overview

  • Berlin’s Finanzverwaltung disclosed €886 million in tax arrears as of June, with liabilities ranging from VAT and income tax to inheritance and dog levies.
  • More than €511 million of the outstanding debts are under active enforcement, but administrative delays raise concerns over timely revenue collection.
  • Citywide vacancies in Berlin’s tax offices total 484 positions, including 97 unfilled roles at the Berlin International unit handling foreign-based businesses.
  • SPD finance expert Sebastian Schlüsselburg secured the arrears figures through a parliamentary inquiry and is demanding immediate staffing boosts in high-pressure specialist units.
  • Lawmakers are urging Finance Senator Stefan Evers to present a cohesive cross-office strategy and accelerate digitalisation to bolster tax administration efficiency.