Government, science and central bank experts have predicted that Germany can look forward to a surge in tax revenues over the next couple of years. They said a robust labor market and higher wages would drive the rise.
The panel of experts reported Thursday the German federal government, regional states and communities were likely to see 19.3 billion euros ($27 billion) more in their coffers by 2018 than originally forecast in November of last year.
The latest tax estimate predicts a dip by about half a billion euros in tax income throughout 2014 to be followed by a significant rise in revenues in the following years.
The report indicated that private households and companies combined would transfer about 640 billion euros this year, with the sum to rise to an annual contribution of 738.5 billion euros in 2018.
No spending spree ahead
"This tax estimate won't give us any greater monetary leeway," German Finance Minister Wolfgang Schäuble told reporters in Berlin. "This is because we've vowed to come up with a balanced budget as of 2015."
The panel compiling the report emphasized the bulk of the windfall would end up in the coffers of governments from the nation's 16 states, with communities unlikely to profit considerably from the overall boost in revenues.
The twice-yearly tax estimate in Germany plays a decisive role for the government's budgetary policies.
hg/ng (Reuters, AFP)