BERLIN, Jan 27 Reuters The tax revenues of Germany39;s federal and state governments increased by 7.1 in 2022 compared with the previous year, beating previous forecasts of a 6.4 rise, the finance ministry said on Friday.

Federal and state governments39; tax revenue increased to a total of 814.9 billion euros 887.75 billion, according to the ministry39;s monthly report.

In the first half of the year, tax revenues considerably increased compared with the same period of the previous year. However, the aid packages announced by the federal government in response to the energy crisis triggered by Russia39;s invasion of Ukraine dampened revenues in the second half of the year.

There were noticeable increases in 2022 in sales tax, the report said. This was due to catchup effects following the COVID19 pandemic, it added.

Wage tax was also higher in 2022 than in 2021, thanks to a stable labour market and fewer workers on the government39;s shorttime work scheme, introduced to help companies struggling during the pandemic. Corporate income tax, which is largely dependent on corporate profits, also increased significantly, the report said.

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Reporting by Maria Martinez, editing by Rachel More

Source Reuters