Tax revenue estimates: Additional receipts despite the recession?Local business taxes for 2008 corrected upwards by €6 billion

The Working Party on Tax Revenue Forecasting for the German Ministry of Finance forecasted increased revenue for 2008 and 2009 at its 132nd meeting. A decline in government revenue as a result of the crisis is presently not foreseen. Although the forecast for economic growth has been reduced, a higher amount of tax revenue is expected than was forecast in May. The receipts from the local business tax in 2008, for example, will be around €6 billion higher than forecast in the preceding estimate. However, profits taxes are anything but crisis-proof. A large portion of the additional receipts is due to declaration and payment delays from previous years. The financial and economic crisis will also affect government revenue after a certain delay.