The German Finance Ministry said that the tax take has risen dramatically this year. adding that there were signs that strong growth would resume next year, when inflationary pressures would also moderate. Tax income rose 23.1% to 78.2 billion euros.
This is good rate when compared to the pandemic’s devastating impact on Europe’s largest economy, over the last year. Over the first nine months of the year, the combined tax take of central and regional government was up 9.1% at 541 billion euros. Germany’s recovery from the pandemic has been strong. The supply chain bottlenecks and inflationary pressures have seen growth forecasts for this year being cut back. But this effect is temporary, as per the ministry.
They wrote that the healthy order books give them the reason to expect strong recovery impulses from industry. While inflation had picked up pace, after hitting a 28-year high of 4.1% in September, it expected significantly more moderate inflation rates next year.