Germany Cuts Revenue Projections
November 6, 2015 Taxation in Germany
BERLIN – Germany is set to see a reduction in tax revenues almost equal to the funds set aside for settling refugees.
In an announcement made on November 3rd the Finance Minister of Germany Wolfgang Schäuble announced that in 2016 the tax revenues which will be collected by the government will be lower than previously expected.
The government had expected to collect tax revenues of EUR 686.2 billion, however, now the government believes that tax revenues will only hit EUR 681 billion, a level which is EUR 5.2 billion lower.
The reduced tax revenues are expected to put extra pressure on the government budget, especially since earlier this year the government set aside approximately EUR 6 billion to be spent to help feed, shelter and settle refuges coming to the country.
The Minister said that the government would continue to see a balanced budget, despite the promised extra spending on refugees and the reduced tax collections.
However, over the course of this week at a conference held in Nuremberg, tax experts from around Germany claimed that in the mid-term the country will see a solid rise in tax collections, with tax revenues hitting a total of EUR 795.6 billion by 2020.
Photo By: Emilian Robert Vicol