BERLIN (MNI) – The decline of German federal tax revenue slowed
markedly in March, while the downturn of total public tax revenue
(excluding local taxes) gained momentum, according to data released by
the Finance Ministry on Thursday.
Federal tax revenue in March was down 0.2% y/y after -10.6% y/y in
February. The February result had been distorted to the downside by
transfers to the EU. In the first quarter, federal tax revenue was down
7.1% y/y. For the full year of 2010, the government’s tax estimate
commission forecast in November a decline of 5.4%.
A Finance Ministry spokesman said the tax cuts which came into
effect at the start of the year had not been included in the full-year
forecasts made in November. The effect of the tax cuts were, however,
already taken into consideration in the 2010 budget.
Thus, “the development of tax revenue is as planned, there is no
backlash,” spokesman Tobias Romeis said.
Total public tax revenue (ex-local taxes) fell 3.7% y/y in March
after -2.8% y/y in February. In the first quarter, total tax revenue
(ex-local) is down 4.8% y/y, also trending below the forecast for a
full-year decline of -2.6%.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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