Tax receipts rise again significantly in October

tax money

The treasury will benefit from the good development of the economy.

(Photo: dpa)

Berlin After two months of declines, federal and state tax receipts rose again significantly in October. They increased by 6.1 percent to 56.67 billion euros, according to the monthly report of the Federal Ministry of Finance, which will be published on Tuesday. The plus reflects the recently surprisingly good economic development. Despite the burden of the war in Ukraine, gross domestic product in Germany grew by 0.3 percent in summer compared to spring.

In the first ten months together, tax revenue climbed 9.3 percent to 650 billion euros. According to the ministry, this is also due to the comparatively low values ​​from the previous year as a result of the corona pandemic. Experts expect growth of 6.4 percent for 2022 as a whole. This also reflects the effects of inflation, which bring the state more revenue from sales and wage taxes.

In September and August, federal and state tax revenues fell by 9 percent and 2.6 percent, respectively. In July there was only a mini plus of 0.3 percent.

According to the Ministry of Finance, the economic prospects remain gloomy. “Despite the current increase in short-time work, no fundamental deterioration in the labor market is to be expected.” In the service sector, however, citizens’ concerns about inflation are likely to have an increasingly negative impact. Prices are currently rising at the highest rate in decades, which is limiting purchasing power. “The federal government’s relief packages and the economic defense shield, in particular the gas and heat price brake as well as the electricity price brake, will have an increasingly supportive effect on overall economic development. In this way, the uncertainty about the level of future energy costs for consumers should be reduced in the future, which means that consumer confidence can be expected to stabilize and private consumer spending to be supported.”

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