By Maria Martinez BERLIN, April 21 (Reuters) - Germany's federal and state government tax revenue rose by 3.6% in March compared with the same month a year ago, the finance ministry said in its
Germany's Tax Revenue Grows by 3.6% in March, Eyes on Future Trends
Analysis of Germany's Recent Tax Revenue and Economic Outlook
By Maria Martinez
March Tax Revenue Performance
BERLIN, April 21 (Reuters) - Germany's federal and state government tax revenue rose by 3.6% in March compared with the same month a year ago, the finance ministry said in its monthly report on Tuesday.
Impact of One-Time Factors
The year-on-year comparison is skewed by one-time factors such as effects in import VAT and non-assessed taxes on earnings, and the ministry noted that without these factors, there would likely have been a slight decline.
Revenue Figures for March and Q1
Total tax revenue in March reached 89.3 billion euros ($105.25 billion), according to the report.
Tax revenue for the January to March period rose by 0.9% from the same period in 2025, to 224.2 billion euros.
Future Trends and Economic Projections
Energy Prices and VAT Implications
The report noted that the impact of rising energy prices was not yet clear for future readings, given the likely increase in VAT due to higher prices balanced against the possible decrease in tax paid due to less energy being consumed.
Government Growth and Inflation Forecasts
The German government has halved its growth forecast for 2026 to 0.5% growth, while raising its inflation projections due to the conflict in Iran, a source told Reuters on Thursday.
Long-Term Tax Revenue Outlook
Tax experts see tax revenue increasing to 926.9 billion euros in 2026, up 2.8% from the previous year, according to the report.
($1 = 0.8485 euros)
(Reporting by Maria Martinez;Editing by Alison Williams)
