Tax revenues to rise by 180 billion euros by 2025

Good economic forecasts lead the tax estimators to a much better outlook for government finances.

Since the start of the Corona pandemic, the results of the usually semi-annual tax estimates have resembled a roller coaster ride. In the fall estimate now published, the state's tax revenues are on a clear upward trend for the second time: Compared with the last estimate, tax revenues will be a good EUR 35 billion higher on average each year up to and including 2025, and thus almost EUR 180 billion higher overall. The biggest share of this growth will go to the federal states, which will collect EUR 22.5 billion more in taxes this year alone than forecast in the spring. The only loser is the EU, into whose pot slightly less tax revenue will flow each year than previously expected. The difference compared with the result of the May tax estimate is almost entirely due to a significantly improved starting point in view of upwardly revised economic forecasts and good tax receipts in 2021.