German taxes continue to rise but supply bottlenecks drag on – government


Aerial view of a container terminal in the port of Hamburg, Germany, November 14, 2019. REUTERS / Fabian Bimmer / File Photo

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BERLIN, Dec.21 (Reuters) – German tax levies rose again in November, rising 15.4% year-on-year to € 54.9 billion, thanks to its recovery from the pandemic earlier this year, although the economic recovery has since slowed, according to the finance ministry’s monthly report.

The combined fiscal income of the central and regional government in Europe’s largest economy grew 10.2% in the first 11 months of the year, according to the report. Experts expect an increase of around 9% for the year as a whole.

Yet the recovery that drove up Germany’s tax revenues has weakened recently due to a fourth wave of COVID-19 and supply bottlenecks, according to the report.

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Supply chains that were shattered by the pandemic are struggling to recover, in part due to new epidemics and the resulting restrictions on public life that continue to impact production and transportation, said the Ministry. Maritime trade, for example, is continually disrupted by quarantine measures in certain ports.

“The supply difficulties are expected to last all winter and could weigh on both retail and industry,” the ministry said.

Inflation, currently at 5.2% – its highest rate in nearly 30 years – is expected to moderate slightly in the new year, he wrote.

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Reporting by Klaus Lauer and Rene Wagner Writing by Sarah Marsh, editing by William Maclean

Our Standards: Thomson Reuters Trust Principles.

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