Stuttgart (dpa / lsw) – Baden-Württemberg can expect additional tax revenue of 1.8 billion euros in the current year. Finance Minister Danyal Bayaz (Greens) announced this on Monday in Stuttgart. This money is included in the overall result for the current financial year. Additional tax revenues of 2.5 billion euros can be expected in the next two years.
The overall positive estimate comes as a surprise at first glance, because the economic forecasts are extremely gloomy due to inflation and the energy crisis: Germany’s economy is shrinking and is probably heading into a recession. The federal government expects economic output to fall by 0.4 percent in the coming year. Because they have to keep the money together, many consumers limit their private consumption.
That would actually indicate a decline in tax revenue, because corporate taxes in particular are dependent on the economy. However, a major factor in the current development is the high level of inflation: if goods become more expensive, the income from the taxes that have to be paid on them also increases. Above all, the value added tax flushes more money into the coffers.
Bayaz said: “The state is not a winner of inflation, nor should it be.” The additional tax revenue of the next two years flowed back completely to the people and companies. Because you support the relief that is also necessary to get through this crisis.
For the years 2025 and 2026, the latest tax estimate results in a minus of around 600 million euros for the state compared to the forecast from May. The current forecast also provides for a plus for the municipalities, cities and districts in the state: 1.8 billion euros in the current year, 998 million euros in the coming year and 960 million euros in 2024. This already takes into account the tax relief, shared the Ministry of Finance.
