German Tax Revenue Boosted by EUR 30 Billion

May 11, 2012 Taxation in Germany

German Tax Revenue Boosted by EUR 30 Billion BERLIN – Germany is looking at decreasing taxes and slashing the national budget deficit, after forecasts for tax collections in the near future were raised.

On May 10th the Finance Ministry of Germany Wolfgang Schaeuble announced that the forecast for taxes to be collected over the next five years has been revised upwards by an estimated EUR 29.4 billion.

In the year 2012 the government of Germany now expects to collect EUR 596.5 billion, which is approximately EUR 4.6 billion higher than previously forecasted.

For 2013 the level of the expected tax revenues have been raised by EUR 5 billion to EUR 618.1 billion.

Over the course of 2014, the government is expected to collect a total of EUR 642.1 in tax revenues, which is EUR 6.4 billion higher than previously expected.

Throughout 2015 and 2016 the tax revenue is expected to be as high as EUR 664.7 billion and 687.3 billion, as the prognosis is now raised by EUR 6.2 billion and EUR 7.2 billion respectively.

The new estimates were agreed upon at a recent meeting of a panel of tax experts from the Finance Ministry of Germany and the central bank of Germany.

Commenting on the revised forecasts, Wolfgang Schaeuble said that Germany is “…on the right fiscal policy path of consolidation and providing growth impetus.”

He added that the extra funds would be used to reduce the budget deficit to 0.35 percent of GDP by 2016, while allowing the government some fiscal breathing room to consider reduction to personal taxes or increases to tax free allowances for individuals.

Photo by Niina ? C