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German tax revenue rose more than expected in 2024, finance ministry says

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Germany's federal and state government tax revenue rose 3.8% in 2024 from the previous year despite the economy contracting, the finance ministry said in its monthly report on Thursday.
The German Finance Ministry reported on January 29, 2025, that tax revenues in 2024 exceeded expectations, totaling 846.4 billion euros, which was 2.4% higher than the previous year and 1.7% above the forecasted amount. This increase was primarily driven by a significant rise in wage tax, which saw a 5.9% increase due to a robust labor market and wage growth. Despite this, the ministry noted that the overall economic growth was lackluster, with GDP growth at just 0.3%. The ministry also highlighted that while tax revenues were up, the economic environment remained challenging, with potential risks from global economic developments and geopolitical tensions. Additionally, the ministry adjusted its tax estimate for 2025 downwards by 1.5 billion euros to 870.5 billion euros, reflecting cautious optimism about future economic conditions.

Read the Full Reuters Article at:
[ https://www.reuters.com/markets/europe/german-tax-revenue-rose-more-than-expected-2024-finance-ministry-says-2025-01-29/ ]