German Tax Revenue Contracted Slightly in January, Ministry Says
German federal and state tax revenue contracted slightly in January in net terms compared with a year earlier, mirroring slower economic growth, the Finance Ministry’s latest report showed.
Tax revenue grew 3.9 percent in nominal terms due to one- time receipts that will have to be repaid later in the year, the Berlin-based ministry said in its February report. In net terms, revenue contracted by 0.4 percent compared with January 2011, it said.
The trend established last year for tax revenue to grow every month “has been broken,” the report said without being more specific.
Europe’s biggest economy is expected to grow 0.7 percent this year, less than a quarter of the pace of 2011, according to the government’s forecast. At the same time, unemployment is expected to continue falling, boosting income-tax receipts.
Chancellor Angela Merkel’s federal budget, passed into law in December, forecasts tax revenue this year to match 2011 receipts of 248 billion euros ($328 billion). Total expenditure is expected to grow by 0.6 percent to 306 billion euros compared with last year.
To contact the reporter on this story: Brian Parkin in Berlin at bparkin@bloomberg.net
To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net
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