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Working from home after Covid-19 a privilege that must be taxed: Bank

Deutsche Bank undertook a survey to examine the major global shift toward remote work

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Deutsche Bank | Work from home | tax

Ksenia Galouchko | Bloomberg  |  New Delhi 

video conference, work from home
The proposed levy would be paid by the employer if they don’t provide their employee with a desk

Earning a living remotely is a privilege that you should be paying for, according to AG strategists. “Working from home will be part of the ‘new normal’ well after the pandemic has passed,” strategists led by Luke Templeman wrote in a note. “We argue that remote workers should pay a for the privilege.”

The strategists propose a 5% levy for those who on a regular basis and not because of a government lockdown mandate. Such a measure could raise $48 billion a year in the US and about 16 billion euros ($18.8 billion) in Germany, they say, to fund subsidies for low-income earners and essential workers who are unable to work remotely.

undertook a survey to examine the major global shift toward remote work that occurred as a result of the Covid-19 pandemic, which may endure as many professionals discover financial, personal and professional benefits of the change.


According to the results, more than half of those working remotely want to continue doing so for between two and three days a week even after the health crisis ends.

ALSO READ: The Work From Home revolution

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The survey of 800 people was conducted in September. Working in the comfort of one’s own home saves money on travel, lunch and socialising, according to Deutsche Bank, and offers greater job security and flexibility, the strategists said. Yet, people who are working remotely are also contributing less to the infrastructure of the economy, potentially extending the slump in growth, they said.

The proposed levy would be paid by the employer if they don’t provide their employee with a desk, whereas if the worker decides to stay home based on their own needs, they would then pay a out of their salary for each day they work remotely, according to Deutsche Bank.

In the US, the strategists calculate, such a could pay for a $1,500 grant to the 29 million workers making under $30,000 a year and unable to “It does make sense to support the mass of people who have been suddenly displaced by forces outside their control,” Templeman said. “Those who are lucky enough to be in a position to ‘disconnect’ themselves from the face-to-face economy owe it to them.”

©2020Bloomberg

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First Published: Wed, November 11 2020. 18:40 IST
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