ARTICLE · 09 NOVEMBER 2004

Further Drop In Tax Revenue Expected

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The finance ministry has just published its latest tax revenue estimates showing further falls of € 1.4 bn in 2004 and of € 3.4 bn in 2005.

GermanyTax

Andrew Miles

The finance ministry has just published its latest tax revenue estimates showing further falls of € 1.4 bn in 2004 and of € 3.4 bn in 2005.

The finance ministry has just published its latest tax revenue estimates showing further falls of € 1.4 bn in 2004 and of € 3.4 bn in 2005. The drop was particularly noticeable with the mineral oil tax (the high cost of petrol is pushing people off the roads) and with the tobacco tax (recent hikes seem to have reduced smoking), but was partly compensated by increases in trade and corporation tax revenue. This latter is seen as a healthy sign of economic recovery. The finance ministry says that it adheres to its aim of bringing the 2005 budget deficit under the 3% of GDP limit.

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