BERLIN (MNI) – German tax revenue growth picked up in December, but
the result was distorted to the upside due to lower contributions to the
EU than a year ago, the Finance Ministry said Friday.
While federal tax revenue in December was 5.1% higher on the year,
full-year results showed a 1.0% annual decline, the ministry said in its
monthly report. In November, the government’s tax estimate commission
had forecast a full-year tax revenue decline of 1.9%.
Total tax revenue excluding local taxes was 4.8% higher on the year
in December, giving a 0.8% gain for all of 2010. The government forecast
was for stagnating full-year tax revenue.
Despite better than expected tax revenues, the ministry reaffirmed
that it will stick to its budget consolidation course.
In the economic section of its report, the ministry said indicators
pointed to a slowdown in growth in the fourth quarter of 2010.
Indicators signal that inflation will remain moderate this year,
the ministry said, reaffirming the government’s forecast for average
inflation of +1.8% this year.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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