MIL OSI – Source: German Ministry of Finance – in English –
Headline: Results of the 145th meeting of the Working Party on Tax Revenue Estimates in Wismar from 4 to 6 November 2014
Federal, Länder and local governments can expect a rise in tax receipts in the coming years. According to the forecast of the Working Party on Tax Revenue Estimates, whose consultations were concluded today in the Hanseatic town of Wismar, tax revenue will increase from €640.9bn in 2014 to approximately €760.3bn in 2019, in line with general economic trends.
The Working Party on Tax Revenue Estimates has revised its expectations for 2015 and the following years slightly downwards from the previous forecast, which was issued in May 2014. The reason for the correction is that Germany’s overall economic performance has become less dynamic. The favourable situation on the labour market and the high level of domestic demand have had a positive effect on tax receipts.
Minister Schäuble stated:
“Our aim of a federal budget without any new debt from 2015 onwards is attainable. The latest tax revenue estimate confirms this. Sound public finances are a prerequisite for confidence, growth and prosperity. Germany’s public budgets have a solid revenue base that will enable us to finance the most important investments for the future of our country.”
Total tax revenue in 2014 is likely to be €0.9bn higher than was estimated in May 2014. The Federation can expect tax revenue gains of €0.7bn, while the Länder will receive an additional €0.6bn. The estimate for local authorities remains roughly unchanged.
The Federation’s 2015 tax receipts are expected to be slightly lower (by €0.5bn) than predicted in May. This is mitigated by the €2.1bn reduction in transfers to the EU. The tax revenue estimates for the following years have also been revised downwards slightly (2016: -€2.9bn; 2017: -€1.3bn; 2018: -€0.8bn). The decline in tax receipts will be reflected in corresponding reductions in the federal budget.
Tax revenue estimates for the Länder and local authorities from 2015 onwards have been revised slightly downwards, as well. The downwards corrections for the Länder are €2.8bn for 2015, by €3.2bn for 2016, by €2.3bn for 2017 and by €2.0bn for 2018. The corresponding downwards revisions for the local authorities are €1.3bn for 2015, €1.2bn for 2016, €1.0bn for 2017 and €1.0bn for 2018.
Working Party on Tax Revenue Estimates delivers latest figures (November 2013)
Working Party on Tax Revenue Estimates