Berlin tax revenues remain stable

From BZ/dpa

Berlin expects stable tax revenues for this year and the two following years.

The financial administration announced this on Friday, citing the regionalized results of the current tax estimate. According to this, around 28 billion euros are expected for this year, around 29.3 billion euros for 2024 and around 30.7 billion euros for 2025.

Compared to the tax estimate from October 2022, this results in a plus of 46 million euros for the current year, 76 million euros for 2024 and a minus of 37 million euros for 2025.

In Berlin, the trend is more positive than nationwide. According to the tax authorities, the main reasons for this are that the large relief packages from 2022 have already been included in the previous tax estimate of the State of Berlin. At the same time, there were slight positive impulses in the economic development in Berlin, which according to the tax authorities are also important.

“The result of the current tax estimate offers both light and shade. On a positive note, the economic momentum in Berlin has so far been unbroken and the labor market in the capital is stable,” said Finance Senator Stefan Evers (CDU).

“So the relief measures have paid off.” At the same time, however, these measures put pressure on the result. “There is therefore no additional financial room for manoeuvre,” warned the CDU politician.

Finance Senator Stefan Evers (CDU) calls for more financial support from the federal government on the refugee issue

Finance Senator Stefan Evers (CDU) calls for disciplined action Photo: picture alliance/dpa

Added to this is the fragile global economic situation. Inflation is high, the uncertainties in energy prices, in the geopolitical situation and on the financial markets are great.

“It is all the more important with a view to the budget deliberations: maintain discipline and set priorities.” During their coalition negotiations, the CDU and SPD had agreed on numerous projects for which the opposition had criticized that the financing was open. Disputes over money are just as likely in many projects as the warning words of the finance senator.

The tax estimate was based on the federal government’s spring forecast, which was published on Thursday. According to this, real growth in gross domestic product (GDP) of 0.4 percent this year and 1.6 percent for 2024 is expected.

For the first time, the Tax Estimation Working Group took into account the extensive tax relief for 2022, including the Inflation Compensation Act and the 2022 Annual Tax Act. In the Berlin tax estimate from last October, in the supplementary budget for 2022/2023 and in the planning for the double budget for 2024/2025, the legal changes are already extensive contain.

The tax assessment working group meets twice a year, in spring and autumn. The committee consists of experts from the Federal Government, the leading economic research institutes, the Federal Statistical Office, the Bundesbank, the Council of Experts for the Assessment of Macroeconomic Development in Germany as well as representatives of the state finance ministries and the municipalities.

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