German English
Search
Business news of the metropolitan region
Finanzsenator Peter Tschentscher (SPD): © Finanzbehörde

Tax authority hikes tax estimate

Hamburg's Senator for Finances Peter Tschentscher (SPD) announces tax estimates for May. Authority expects EUR 58 million extra in 2016

Hamburg’s tax authority has forecast a noticeable rise in tax revenue by 2020, Peter Tschentscher (SPD), Senator for Finances, announced Tuesday (May 17) when presenting this month’s tax estimate. Accordingly, Hamburg can expect EUR 58 million more than forecast last November.

Rise of EUR 119 million

Tschentscher said: “The increasing tax revenue is based on the ongoing, good economic trend.” Hamburg’s above average economic and financial clout puts it clearly among the payer states in Germany’s Länder fiscal equalisation scheme. The tax authority expects revenue to rise in the coming years with the plus of EUR 32 million in 2017 growing to EUR 119 million in 2020. “The available extra funds will be used to boost our main reserves, investments and financial assets and not to empower special authorities,” he stressed.

Gradual steps towards consolidation

Despite the positive forecast, the senate will continue with sufficiently high, precautionary tax deductions to safeguard financial planning from economic risks. Since 2011, this concept has gradually strengthened the budget and complied with the debt cap, Tschentscher noted.
pb

Sources and further information:
www.hamburg.de/pressearchiv
Results of tax estimate: www.hamburg.de/anlage-steuerschaetzung-mai-2016.pdf

About the tax estimate

The tax estimate is always based on applicable tax law. Forecasts are based on current findings. Therefore, the estimate in May for the ongoing year and the following year is not conclusive as the actual tax revenue can deviate later. For this reason, the senat’s budget and financial planning is based on the long-term revenue trend. More information can be found on: www.hamburg.de

More articles