Inflation causes tax revenues to rise significantly

For the coming years, the current tax estimate promises the treasury significantly higher revenues, although these will largely be offset by tax cuts that have not yet been adopted.

According to the results of the latest tax estimate, tax revenue for the federal government, federal states and local authorities will be higher than expected in the May estimate, with the exception of the current year. The forecast tax revenues are higher, particularly in the years 2024 to 2026. Additional revenue of EUR 28.3 billion is expected for 2024, rising to EUR 46.8 billion per year by 2026. However, the estimates should be treated with great caution in view of the high level of uncertainty regarding future economic development. In addition, some of the planned tax relief measures for taxpayers are still being discussed in parliament and are therefore not yet included in the current estimate. These measures are expected to result in a considerable reduction in revenue compared to the current estimate.