Germany Q1 tax intake surges on buoyant economy

Wednesday, 20 April 2011 00:00 - - {{hitsCtrl.values.hits}}

BERLIN, (Reuters) - Germany’s tax revenues surged in the first quarter on the back of a booming economy, Handelsblatt reported, prompting analysts to raise their forecasts for the government’s total tax income this year and next.

Citing government sources, the business daily said total tax revenues for the first quarter were 12 billion euros higher than a year earlier, equivalent to the estimated full-year increase in tax revenue forecast by a panel of tax experts that advise the government. That forecast is now likely to be revised, Handelslbatt said The government panel is expected to revise its annual tax revenue estimates in May, taking into account the improved growth outlook in last week’s Spring Forecast issued by the German Economy Ministry. In March, tax revenues rose 16.5 percent from the same month a year ago as corporate tax revenues soared by nearly half, Handelsblatt reported.