Germany sees spike in dog tax revenue during pandemic
September 14, 2021
Cities and municipalities cashed in on dogs in 2020, as tax revenue paid by dog owners in 2020 rose by nearly 3%.
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Germany raked in a record revenue from dog records in 2020, the Federal Statistical Office said on Tuesday.
Public coffers collected about €380 million ($448 million) from the dog tax. The figure represented an increase of 2.7% compared to 2019, when Germans paid €370 million.
The Federal Statistic Office data show that the trend is continuing. In the first quarter of 2021, dog tax revenue was around €159 million, 8.4% higher than in the same quarter last year.
What is behind the increase?
The Federal Statistical Office said there was not enough information to determine if a rise in tax revenues meant a rise in dog ownership, as it could also be a factor of rising tax fees.
Statistics also show that dog tax revenues have been rising consistently. Dog tax revenue in 2019 was 3 % higher than the previous year and 50% higher than ten years earlier.
Long confinement, lockdowns and a reduction in travel as a result of the COVID pandemic could have also contributed to an increase in pet ownership.
Dogs owners almost everywhere in Germany have to pay a yearly tax for their pet. This money is collected by individual municipalities.
The sum varies and it can be as little as $5 or nearly $200 per year, depending on the city or community. In Germany's capital, Berlin, dog keepers pay $120 for one dog per year and $180 for each additional dog.
jcg/wmr (dpa, AFP)
Germans spend a fortune on coronavirus pandemic lockdown pets
During the virus pandemic, Germans have bought another million house pets bringing the total to around 35 million. Besides keeping their owners company, the animals were the beneficiaries of €5 billion in pet supplies.
Image: Fabrice Coffrini/Getty Images/AFP
Big eyes and big sales
Last year brick-and-mortar pet supplies retailers had an overall turnover of €4.5 billion ($5.3 billion) for food and things like official pet toys and beds. It was a 4.3% increase over 2019. Online sales came in at around €820 million. Add in wild bird feed, and the industry brought in nearly €5.5 billion during the pandemic year, according to data released by IVH, a pet supply industrial group.
Image: picture-alliance/dpa/M. Murat
Puppies for every season
Not surprisingly, man's best friend is no stranger in Germany. With the sales and prices of dogs up in the past year, the country is now home to over 10 million dogs. During the pandemic these dogs were not a luxury but often a companion and a shield against loneliness. Who wouldn't spend a little more — or splurge on gourmet food or a steak — on a beloved family member?
Image: picture-alliance/J. de Cuveland
Cats are the top of the heap
But in Germany, cats are king. Currently there are 15.7 million of them, a quarter of all house pets. Though felines are known for being easy to care for, German fashion legend Karl Lagerfeld's cat Choupette had a life of luxury. Though they lived in France, he was doing what many of his countrymen do. The biggest increase last year was spending for cat snacks and milk. It was up 9.4%.
Image: picture-alliance/Eventpress
Almost 35 million and counting
The country added around a million new pets in the past year. Now 47% of households have some sort of pet but they are not all just cats and dogs. There are 5 million small animals like rabbits, guinea pigs, hamsters and mice. On top of that there are 3.5 million birds, 1.8 million aquariums and around 1.3 million terrariums for lizards and turtles. Caring for all these animals is big business.
While most people in Germany are required to socially distance, house pets can visit their friends while out walking. Chance encounters like this may be the reason that veterinarians, groomers and dog walkers have been kept busy. These costs and the original purchase of the pets are not in the study. So the real figure for animal spending is much higher than the report's €5 billion.
Image: Fabian Strauch/dpa/picture alliance
Germans are far behind the US
The Germans may love their pets. Yet, by international standards they are laggards. When looking at pet care spending per person in 2019, Germany was in fifth place, according to research done by "The Economist." Ahead of it was Switzerland, France and the UK. In the number one spot was the US, which left everyone in the dust and spent more than double what the Germans shelled out.
Image: Fotolia/quipu
Traveling and eating in style
Though the lion's share of spending goes to pet food, other things are becoming must-haves. Forget ordinary carrying cases, rich pet owners are reaching for Tiffany leashes and Prada carry bags. Others are shopping for Versace food bowls, sweaters from Ralph Lauren or puffy vests by Moncler to keep their pets warm. And that doesn't include all the funny costumes often posted on Instagram.
Image: picture-alliance/empics/D. Lipinski
Working from home, shopping online
Since many people are working from home, it is good news for pets but bad news for pet day care businesses. Yet in general, the pet business has been a winner of coronavirus pandemic lockdowns. A lot is spent in grocery stores or specialty pet shops, but online shopping for pet supplies is growing. Last year, online spending was at least €820 million, a 16% increase over the previous year.
Image: picture-alliance/dpa/I. Fassbender
Lockdown friends, for now
While the prices of some animals have gone through the roof recently, many fear criminals are increasingly dealing with animals transporting them from dodgy breeding farms throughout Europe. Others are worried that when the pandemic is over and things go back to normal, owners won't have the time or just no longer want their two or four-legged companions anymore. Animal shelters fear the worst.