The Limited Times

Now you can see non-English news...

Tax revenues swell by 26 percent

2022-07-21T06:05:02.466Z


Citizens and companies in Germany are paying more and more taxes. In the first half of 2022, 408 billion euros flowed into the state coffers.


Enlarge image

Guardians of the billions: the main building of the Federal Ministry of Finance on Berlin's Wilhelmstrasse

Photo: imago images / Joko

The German state is facing enormous financial challenges: It has to manage the gas crisis, support companies like Uniper and at the same time not neglect investments in the energy transition and climate protection.

And that after two years of extraordinary stress caused by the corona pandemic.

After all, it is not only government spending that is increasing, but so is income.

Federal and state tax revenues also rose sharply in June.

Compared to the previous year, they increased by 26.3 percent to a good 93 billion euros, as the Federal Ministry of Finance announced in its monthly report on Thursday.

In the first six months of the year, tax revenue grew by 17.5 percent to almost 408 billion euros.

Big increase in sales tax

"In terms of income tax, the robust labor market ensured a strong increase in income," says the report.

Unadjusted wage tax totals increased by 10.6 percent in June.

Companies paid significantly more taxes than a year ago: Corporate tax revenue rose by 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.

High new debt

So far, Germany is planning new debt of almost 140 billion euros in the current year.

In 2023, the debt brake of the Basic Law should be complied with again, and then the new debt should be just under ten billion euros.

According to Federal Finance Minister Christian Lindner, "exactly 9.9 billion euros" are allowed.

It is questionable whether this plan can be adhered to in view of the looming energy crisis in winter.

beb/Reuters

Source: spiegel

All business articles on 2022-07-21

You may like

News/Politics 2024-03-05T17:36:12.990Z

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.