German tax revenue rose 6.2% in June
By Maria Martinez
BERLIN, July 23 (Reuters) -Germany's federal and regional state governments' tax revenue rose strongly in June compared with the same month last year, the finance ministry said on Tuesday.
The federal and state governments' tax revenue increased by 6.2% year-on-year to a total of 91.7 billion euros ($99.85 billion) in June, according to the ministry's monthly report.
The tax revenue rose by 3.6% in January through June, when compared with the same period last year, and reached 414.0 billion euros.
The tax incomes are expected to increase throughout the year as inflation continues its downward trend and consumers gain purchasing power, which would be positive for sales taxes.
For full-year 2024, analysts forecast tax revenue will increase to 863.68 billion euros, up 4.1% from the previous year, according to the report.
The economy is expected to pick up steam in the second half of the year, following a sluggish first half.
Last week the German cabinet passed an economic package that aims to rev up the euro zone's biggest economy and boost growth by more than half a percentage point in 2025.
Stronger economic growth thanks to the economic package should generate additional revenue of 6 billion euros next year, according to the estimates of the economy ministry.
"In wage and income tax, we are providing considerable relief in the order of 23 billion euros over the next two years," German Finance Minister Christian Lindner said in the monthly report, referring to the 2025 budget passed by the coalition last week.
"In the next few weeks, we will draw up the other laws to implement the growth initiative and also pass them, for example the Annual Tax Act 2024 in July, which contains many of the tax measures to dynamise the economy," Lindner said.
($1 = 0.9184 euro)
Reporting by Maria Martinez in Berlin
Editing by Matthew Lewis
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
