BERLIN (MNI) – Germany’s tax revenue trend slowed in January, the
Finance Ministry said its monthly report released Thursday.
Total tax revenue (excluding local taxes) in January was 3.9%
higher on the year. However, the result was distorted to the upside by
tax revenue that has to be reimbursed later in the year, the ministry
pointed out.
Without this special effect, total tax revenue in January would
have declined by 0.4% on the year, the ministry said. “The trend of
monthly rising revenue has been broken for the moment,” it remarked.
For the full year, the government’s standing forecast is for total
tax revenue growth of 3.2%.
Federal tax revenue in January was 5.9% higher on the year. The
result was skewed to the upside by markedly lower transfers to the
European Union, the ministry said. For the full year, the government is
expecting a 0.8% federal tax revenue rise.
Federal revenue — tax intake plus other income — was up 5.3% on
the year in January, while expenditures rose only 0.6%.
In the economic section of its report, the ministry said that
leading indicators signaled that the current phase of economic weakness
would be gradually overcome.
Inflation is seen slowing this year due to declining imported price
pressures and an expected more moderate rise in unit labor costs.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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