BERLIN (Reuters) – The tax revenues of Germany’s federal and state governments increased by 7.1% in 2022 compared with the previous year, beating previous forecasts of a 6.4% rise, the finance ministry said on Friday.
Federal and state governments’ tax revenue increased to a total of 814.9 billion euros ($887.75 billion), according to the ministry’s monthly report.
In the first half of the year, tax revenues considerably increased compared with the same period of the previous year. However, the aid packages announced by the federal government in response to the energy crisis triggered by Russia’s invasion of Ukraine dampened revenues in the second half of the year.
There were noticeable increases in 2022 in sales tax, the report said. This was due to catch-up effects following the COVID-19 pandemic, it added.
Wage tax was also higher in 2022 than in 2021, thanks to a stable labour market and fewer workers on the government’s short-time work scheme, introduced to help companies struggling during the pandemic. Corporate income tax, which is largely dependent on corporate profits, also increased significantly, the report said.
($1 = 0.9179 euros)
(Reporting by Maria Martinez, editing by Rachel More)
