Germany reports first tax revenue rise for more than a year

, Comments 0 comments

Germany's finance ministry recorded in April its first tax revenue increase for more than a year, it said on Thursday.

Revenues rose by 4.4 percent to 37.2 billion euros (45.9 billion dollars), the first rise since January 2009, a monthly report said.

Over the first four months of 2010 however, tax receipts still showed a decline of 2.6 percent from the same period a year earlier.

The German economy, Europe's biggest, expanded by 0.2 percent in the first quarter of 2010 and the government has forecast full-year growth of 1.4 percent.

"The consequences of the crisis will nonetheless continue to be felt for several years on state revenues, fiscal receipts will only regain their 2008 level in 2013," junior finance minister Hans Bernhard Beus was quoted in the report as saying.

For all of 2010, Germany expects to take in 510.3 billion euros in tax revenues, 2.6 percent less than in 2009.

A government's tax revenues are closely tied to economic activity. In most countries in western Europe, one of the biggest items behind a worsening of public finances in the two years since the financial crisis broke has been a big drop in tax income.

© 2010 AFP

0 Comments To This Article