Germany’s tax revenue rises 6.2% in June

Germany’s federal and state tax revenue rose significantly in June by 6.2 per cent year-on-year (YoY) to €91.7 billion ($99.85 billion), according to the finance ministry’s report. From January to June, tax revenue increased by 3.6 per cent, reaching €414.0 billion.

Tax incomes are expected to rise throughout the year as inflation decreases and consumer purchasing power grows, boosting sales taxes. Analysts forecast full-year 2024 tax revenue to grow 4.1 per cent to €863.68 billion. The economy is anticipated to strengthen in the latter half of the year after a slow start.

Last week, the German cabinet approved an economic package to stimulate growth by over half a percentage point in 2025, potentially generating an additional €6 billion in revenue next year.

“In wage and income tax, we are providing considerable relief in the order of 23 billion euros over the next two years,” said Finance Minister Christian Lindner. He also noted plans to pass further growth initiatives, including the Annual Tax Act 2024 in July.

Attribution: Reuters