Tuesday, May 11, 2021
18 billion euros more than expected
Treasury can plan more income
The tax assessment working group is currently calculating: How much money will the state have on the income side in the coming years? The first results are already seeping through – it could amount to positive news for the tax authorities.
Tax revenues in the coming years could be significantly higher than previously expected. Up to and including 2025, federal, state and local government revenues are likely to be 18 billion euros higher than expected according to the tax estimate from last November, reports the “Handelsblatt”, citing a presentation by the Federal Ministry of Finance for the current tax estimate.
The tax assessment working group has been discussing its new spring forecast since Monday. The results are to be announced this Wednesday. According to “Handelsblatt”, the majority of the now expected additional income will be attributable to the municipalities, which can therefore expect an increase of 9.9 billion euros by 2025. The federal states account for 5.9 billion euros in additional income and the federal government for 2.2 billion euros.
The reason for the improved forecast in the estimate template is, among other things, the slightly more optimistic growth forecast by the federal government, it continues. However, the increases will therefore mainly only occur at the end of the forecast period. “The fat years are only at the end,” reported the “Handelsblatt” from government circles. Regarding the current deliberations of the Working Group on Tax Estimation, the paper quotes: “At the moment everything is in flux.”
Because of the numerous special effects due to the corona pandemic, the forecast is much more complicated than usual this time. The federal government is currently expecting economic growth of 3.5 percent for this year. However, even with a significant increase of more than 20 billion euros, tax revenues would still be well below the forecast revenues from before the Corona crisis.
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