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