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Global Economy

Tax revenue increased sharply

Federal and state tax revenues rose sharply in the first half of the year. Compared to the same period last year, they were 17.5 percent higher, as can be seen from the new monthly report from the Federal Ministry of Finance. The revenue was almost 408 billion euros.

Robust labor market

"In the case of wage tax, the robust labor market ensured a strong increase in income," it continues. Unadjusted, they increased by 10.6 percent in June. Businesses also paid more taxes, with corporate tax revenue up 29.3 percent year-on-year.

The increase in revenue from sales tax was even greater at a good 55 percent. High inflation also contributed to this. According to the monthly report, the increase is partly due to accounting shifts in sales tax on imports. But even adjusted for these effects, strong increases in import prices would have increased the value of imported goods and thus income significantly. Revenue from domestic sales tax increased by 9.2 percent.

Weak basis for comparison due to Corona

Community taxes, which the federal, state and local governments are jointly entitled to, increased by 19.9 percent. This includes, among other things, revenue from sales tax and wage tax. Federal taxes increased by 3.9 percent and state taxes by 9.1 percent.

However, the report points to a weak basis for comparison. The effects of the corona pandemic and fiscal cushioning measures reduced revenue last year.

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