Status: 10/21/2021 9:45 a.m.
After the corona-related declines last year, tax revenues are now skyrocketing again. In September the increase was 23 percent. Above all, the tax revenues of the federal states are increasing.
The federal and state tax revenues continued to recover in September. As can be seen from the current monthly report of the Federal Ministry of Finance, revenues climbed by 23.1 percent to 78.2 billion euros. In August the plus was a good eight percent.
The increase is mainly due to the increase in so-called community taxes (plus 28.6 percent). These include income tax, corporation tax and sales tax. The high increases in wage tax and taxes on sales are mainly due to the very weak comparative figures from the same month last year.
Strong growth in prepayments
The payout of the child bonus had an impact on income tax revenue in a year-on-year comparison. In addition, sales tax collapsed last year due to the temporary lowering of the tax rate. Growth was correspondingly strong in September this year. Corporate income tax revenue also developed very well in the reporting month of September 2021. Considerable increases were recorded here, particularly in advance payments – an indication of the economic upturn and a significantly improved business development of the companies.
In the case of federal taxes, however, there was a 4.2 percent decline in September compared to the same month of the previous year. In contrast, income from state taxes showed an increase of 7.2 percent.
Increase also in the first nine months
Overall, federal and state revenues rose to a good 541 billion euros in the first nine months – 9.1 percent more than in the previous year. The income from community taxes increased by 12.1 percent. While federal tax revenue fell by 7.5 percent, income from state taxes increased by twelve percent.
Regarding the German economy, the monthly report said that experts’ expectations for this year had recently been revised downwards. “Well-filled order books mean that strong economic (catch-up) impulses from industry and thus a correspondingly stronger macroeconomic dynamic can be expected for the next year.” Given the recent sharp rise in inflation, a return to “significantly more moderate inflation rates” can be expected next year. In September prices in Germany had risen by 4.1 percent, making the rate above four percent for the first time since 1993.