Tax Revenues Up in Germany

August 21, 2012 Taxation in Germany

GermanyBERLIN – Germany’s financial position has improved significantly over the course of 2012, and tax revenues in the country rose by nearly 9 percent in the month of July 2012.

Germany saw its tax revenues rise by approximately 9 percent in July 2012 and 5 percent in the first half of the year, despite the ongoing debt crisis in Europe and a slowdown in its own economic growth in the second quarter of the year, according to a statement released by the Finance Ministry of Germany on August 20th.

Over the course of July tax authorities in Germany collected a total of EUR 43.1 billion in tax revenues, an increase of approximately 8.6 percent compared to the same period in 2011.

Between January and July cumulative tax revenues in Germany reached approximately EUR 311.4 billion, and the total collected was 5 percent above the same period last year, and exceeded the forecasted growth level of 4 percent.

The increase in tax revenues has been attributed to a increased employment levels and rising salaries in Germany over the course year.

In its statement the Finance Ministry warned that despite the growing tax revenues, “…the whole picture painted by economic indicators suggests that the German economy could slow down during the rest of the year,” primarily due to the possibility of recessions in neighboring eurozone countries.

In the coming year the German government plans to be prudent with its budgetary spending, indicating that in 2013 the total budget outlay will be EUR 10.5 billion less than in 2012, leading to the possibility of a balanced budget by the end of 2014.

Photo by caribb