Germany’s tax revenues continue to rise significantly, according to the latest monthly report released by the Federal Ministry of Finance on Tuesday. June saw a surge in income, exceeding a 7% increase compared to the same period last year.
Value-added tax (VAT) demonstrated a noteworthy increase, mirroring the trend observed in May, jumping by 7.2%. Income tax revenues, however, experienced a more modest rise of 2.6% – a contrast to the gains seen in May. Revenue from capital gains and interest income taxes also exhibited a comparatively slower growth rate of 12.5% compared to earlier months in the year. Corporate income tax revenue, conversely, declined slightly year-on-year, decreasing by 2.8%.
Federal tax revenues in June were approximately 10% higher than in June of the previous year. This substantial increase was largely attributed to a significant boost in tobacco tax revenue, supported by a weaker comparative basis in the prior year. Other significant federal taxes, including energy tax, solidarity surcharge, insurance tax, vehicle tax and electricity tax, also registered increases.
State tax revenues showed a marked increase of 25% compared to June of last year. This growth was driven by both primary state taxes – real estate transfer tax and inheritance tax. Real estate transfer tax revenues remained within a range of €1.2 to €1.3 billion, approximately 24% higher than the figures recorded in the previous year. Inheritance tax revenues surged by nearly 36%. This tax category is characterized by inherent volatility in monthly revenue collection.
The Ministry noted that should revenue levels remain similarly high in the coming months, growth rates are likely to appear slightly lower compared to the more robust baseline of the prior year.