German state tax revenues up 7.1% in 2022 - finance ministry
Tax revenues for Germany's federal government and state governments rose 7.1% in 2022 compared to the previous year. This beat previous forecasts of a 6.4% increase, according to the finance ministry.
According to the ministry's monthly reports, tax revenues from both federal and state governments increased to €814.9 billion.
Tax revenues significantly increased in the first half of this year compared to the same period last year. The federal government's aid packages to Ukraine in order to address the energy crisis that arose from Russia's invasion of Ukraine dragged down revenues in the second quarter.
The report stated that there were significant increases in sales tax in 2022. It was due to catch up effects from the COVID-19 pandemic.
The stable labour market and fewer employees on the government's temporary work program, which was introduced to assist companies in need during the pandemic, also contributed to the higher wage tax in 2022 than 2021. The report also stated that corporate income tax, which is heavily dependent on corporate profits has increased significantly.
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