Saarland is expecting losses in tax revenues in the double-digit million range this year and next. This is the conclusion from the tax estimate for Germany, which was published last week. The Ministry of Finance in Saarbrücken announced on Tuesday evening that the country is expected to experience a loss of 20 million and 58 million euros in 2024 and 2025, respectively.
Finance Minister Jakob von Weizsäcker (SPD) emphasized the importance of budget consolidation – also in view of the current challenges caused by the floods. Lower income is also expected in 2026, but these are likely to be less large.
According to the ministry, the municipalities in Saarland must expect lower income of 18 million euros this year and 32 million euros next year due to the economic situation and the associated losses in trade tax. The bottom line is that the economic situation is particularly noticeable in the major community taxes such as wage and income tax as well as sales tax, explained the ministry. These fell well short of expectations.
The tax estimators came to the conclusion that the federal, state and local governments will have to expect a total of 21.9 billion euros less tax revenue next year than was assumed in the fall. According to the Federal Ministry of Finance, there will also be significant reductions in revenue compared to the last estimate in the remaining years of the estimation period up to 2028 – a total of 80.7 billion euros.