BERLIN (MNI) – German tax revenue growth picked up in January, but
the result was distorted to the upside due to lower contributions to the
EU than a year ago, the Finance Ministry said in its latest monthly
report released Monday.
The ministry also noted that tax revenue in January of 2010 had
been “very weak” and thus cautioned that no premature results should be
drawn from the strong annual rise last month.
Total tax revenue excluding local taxes in January was 5.5% higher
on the year. For the full year, the government’s tax estimate commission
forecast in November an increase of 1.0%.
Federal tax revenue rose 11.0% on the year in January. Full-year
government forecasts see a decrease of 0.2%.
Federal revenue — tax intake plus other income — was up 4.5% on
the year in January. The 2011 budget assumes a 0.9% revenue drop for the
full year. Federal expenditures were up 5.1% in January. For the full
year, the budget tables an increase of 0.7%.
In the economic section of its report, the ministry said that
“leading indicators are pointing to a favorable start of the German
economy to 2011.”
“Industrial indicators continue to show a clear upward trend,” the
report noted. “Together with the noticeable increase in hiring
intentions of businesses, this speaks for a continuation of the economic
upswing.”
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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