The federal and state governments recorded a significant increase in tax revenue in September 2023 - an increase of over 13 percent compared to the previous year.

The federal and state governments recorded a significant increase in tax revenue in September 2023 - an increase of over 13 percent compared to the previous year.

According to a report from web.de, the federal and state governments recorded significantly more tax revenue in September compared to the previous year. A total of around 80.6 billion euros was collected, which corresponds to an increase of over 13 percent compared to September 2022. However, the Ministry of Finance attributes this increase primarily to a special effect, as a year ago the income tax revenue was exceptionally low due to the payment of the energy price flat rate from this pot.

From January to September of this year there was no such significant increase in taxes; federal and state revenues were only 2.5 percent higher than in the same period last year. A moderate increase of just under three percent is currently expected for 2023 as a whole.

However, this forecast could be corrected next week when the working group of tax estimators presents its autumn estimate. It will become clear whether the traffic light coalition will have more financial leeway in the coming year or whether it will even have to tighten its consolidation course.

The positive tax revenues in September indicate that the economic recovery from the COVID-19 pandemic continues. Through increased revenue, the federal and state governments can improve their financial situation and possibly make additional investments. This can have a positive impact on the market and the financial industry by opening up more investment opportunities and increasing investor confidence.

However, there is also the possibility that the tax estimators' autumn estimate will result in a correction to the previous forecast. If tax revenues are lower than expected, this may lead to an adjustment to the government's financial plans. The traffic light coalition could be forced to tighten its consolidation course and reduce spending. This could create some uncertainty in the market and affect investor confidence.

Overall, tax revenues showed a positive development in September, indicating an economic recovery. However, the impact on the market and the financial sector depends on the tax assessors' upcoming autumn estimate. It remains to be seen whether the positive trends will continue and how this will affect the government's financial situation.

Source: According to a report from web.de