German February Tax Revenue Jumps, Highlighting Domestic Demand

German federal and state tax revenue jumped 6.9 percent in February compared with a year earlier as unemployment continued to fall and companies reported export growth in Asia, the Finance Ministry said.

Falling unemployment boosted income tax revenue in February and sales tax led by the manufacturing sector, the Berlin-based ministry said today in its report for March that looks back at the previous month’s developments.

Federal tax revenue grew in the month by 5.5 percent from a year earlier. State revenue grew 7.7 percent, the ministry said.

Recent indicators including the Ifo business confidence index point to Germany’s economy growing quicker in the second half of the year, the ministry said.

To contact the reporter on this story: Brian Parkin in Berlin at bparkin@bloomberg.net

To contact the editor responsible for this story: Angela Cullen at acullen8@bloomberg.net

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