Germany Sees Tax Revenue Boost
November 7, 2011 Taxation in Germany
BERLIN – The German budgetary plan will be boosted in 2011, with the government announcing that collections for the year have greatly exceeded previous estimates.
In a statement released on November 4th the Finance Ministry of Germany revealed that the country saw a marked increase in tax collections for the year, with recorded tax revenues exceeding the government’s projections made earlier in May.
According to the Finance Ministry of Germany, the total tax collections for the year will reach EUR 571.2 billion. Originally it was estimated that the collections level would only be EUR 555 billion. The EUR 16.2 billion boost to the budget will be used to slash the country’s current EUR 48 billion budget deficit.
Commenting on the latest tax collections analysis, the Deputy Finance Minister Steffen Kampeter said that the high revenues were a result of unexpected but steady economic growth throughout 2011. The Deputy Minister added that the government now forecasts continued economic growth for the country in the next year, but warned that the expansion is slated to slow down in 2012. The government projects that the cumulative tax collections for the years 2011 through to 2015 will be EUR 39.5 billion higher than previously forecasted.
Discussions are already rising over what Germany will do with the new found funds. The Finance Ministry indicated that cuts to personal income taxes were now a feasible possibility, although taxpayers should not expect any drastic reductions to their obligations. Steffen Kampeter explained that the government is still primarily focused on balancing the national budget by 2016.
Photo by caribb