–Adds Tax Estimate For 2015 To Story Sent At 07:58 GMT
BERLIN (MNI) – The German Finance Ministry expects total public tax
revenue this year to exceed estimates dating from May by some E17
billion, German business daily Handelsblatt reported Tuesday citing
ministry calculations.
For next year, the ministry expects tax revenue to top May
estimates by around E7 billion, Handelsblatt wrote. For 2013, the
ministry sees extra tax revenue of around E4 billion, for 2014 of around
E6 billion and for 2015 of around E7 billion, according to the paper.
The ministry calculations will form the base for the deliberations
of the government’s tax estimate commission, which will gather from
Wednesday till Friday.
A senior government official said Monday the government expects
that the new tax revenue forecasts to be issued on Friday will show that
income tax rates can be cut in 2013 without driving up the deficit.
“We’re confident that there will be additional revenue which will
create the leeway for the tax cuts as planned,” the source explained.
Finance Minister Wolfgang Schaeuble announced last month that the
government aimed to cut income taxes by some E6-7 billion in 2013 “to
support the good economic situation.”
Total tax revenue (excluding local taxes) in September rose 7.3%
y/y and was up 8.6% y/y in the Jan-Sep period, the ministry reported
last month. The government’s standing full-year forecast is for tax
revenue growth of 4.4%.
Federal tax revenue rose 9.6% y/y in September and was up 10.3% y/y
in the Jan-Sep period compared to a full-year forecast of +5.1%. The
ministry reaffirmed its expectation that federal net new borrowing this
year will likely be significantly below E30 billion, thus markedly
undershooting the E48.4 billion earmarked in the 2011 budget.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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