Germany’s Ministry of Finance revealed that the federal and regional governments’ tax revenues significantly dropped in July 2024, compared to July 2023. The findings were published in a report on Tuesday, 22 August.
This decline was primarily driven by a steep decrease in sales tax revenue.
According to the ministry’s monthly report, tax revenue for federal and state governments fell by 7.9% year-on-year in July, totalling EUR 63.8 billion (USD 70.91 billion). However, from January to July of this year, the tax revenue increased by 1.9% compared to the same period of last year, reaching EUR 477.8 billion.
In response, the German cabinet approved an economic package in July, which is projected to boost economic growth by over half a percentage point and potentially generate an additional EUR 6 billion euros in revenue in 2025.
