German tax take soars, but war clouds outlook

People carry bags on Hohe Strasse shopping street as the spread of the coronavirus disease (COVID-19) continues in Cologne, Germany, 1 December, 2021.

Germany's estimated tax take over the first five months of the year was 15.1% higher than last year, thanks partly to a strong recovery from the pandemic and despite the war in Ukraine, the Finance Ministry said.

The estimated tax take for May - by both central and regional governments - was up 10% on a year earlier to nearly €55 billion ($58bn), the ministry added in its monthly report.

The ministry said there were high levels of uncertainty about developments over the rest of the year, due partly to the war in Ukraine.

"The level of forecast uncertainty is very high at the moment, and that applies also to future tax take," it said. "That depends above all on the future course of the Russian invasion of Ukraine."

The pandemic also remained a serious cause of uncertainty, in particular to the extent that it affected supplies from China.

($1 = €0.9517)

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