Status: 10/20/2022 03:42 a.m
For the first time this year, tax revenue in Germany fell noticeably. The main reason for this is the federal government’s measures to combat high energy prices.
For the first time this year, measures to combat high energy prices in Germany have led to a significant drop in federal and state tax revenues.
Revenue from the Treasury was 71.2 billion euros in September, 9.0 percent below the previous year’s level, according to the monthly report from the Federal Ministry of Finance. “The main reason for this was the sharp reduction in wage tax revenue due to the payment of the energy price flat rate in September 2022.”
Federal tax revenue fell 10.6 percent. The main reason for this is the reduction in energy tax rates from June to August – i.e. the tank discount. This led to a “significant reduction in energy tax revenue in the months of August to October”.
Almost ten percent more tax revenue than last year
In the first nine months of this year, federal and state tax revenues totaled a good 593 billion euros – 9.7 percent more than a year ago. “This was partly due to the weak 2021 basis for comparison, particularly in the first half of the year, as a result of the economic impact of the corona pandemic.”
Experts are firmly anticipating a recession in Germany due to the energy crisis. Federal Economics Minister Robert Habeck recently warned of a harsh winter when the federal government presented its economic forecast.
The traffic light coalition’s estimate for this year still envisages growth in gross domestic product (GDP) of 1.4 percent. “In view of the burdens caused by the high energy prices, on the other hand, there is likely to be a decline in GDP in the winter half-year and thus in 2023 there will be an overall reduction in GDP of 0.4 percent,” said the Ministry of Finance.
The relief packages and the defense shield of the federal government of around 200 billion euros should help to stabilize. “A recovery with economic growth of 2.3 percent is expected for 2024.”