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Tax revenues bubbling up again
The latest tax estimate forecasts total additional tax revenues of EUR 220 billion for the next five years.
Since the start of the Corona pandemic, the semi-annual estimates of tax revenue have taken a real rollercoaster ride. Following massive slumps, it is now not least noticeable inflation that is leading to a significant increase in expected tax revenue over the next few years. The further recovery on the labor market and the significantly lower level of short-time working compared with the previous year are also reflected in payroll tax revenues. However, the latest forecast is characterized by high economic uncertainty. In addition, the extensive relief measures introduced by the German government have not yet been taken into account in the estimate. With these restrictions, the May tax estimate puts annual tax revenues up to and including 2026 at around EUR 44 billion higher than forecast in November - a total increase of EUR 220 billion.