Financial Times FT.com

Forecast hits Berlin’s tax-cutting hopes

By Bertrand Benoit in Berlin and Ralph Atkins in Frankfurt

Published: November 5 2009 18:26 | Last updated: November 5 2009 18:26

Hopes that economic recovery would give Berlin more scope to cut taxes in the coming years were dashed on Thursday after government-appointed experts said the rebound would have almost no positive impact on tax revenues in 2010.

The government’s twice-yearly revenue estimate for next year, showing tax receipts of €511.5bn ($765bn, £460bn), was only €1.1bn higher than the previous forecast, issued in May, in spite of a recent increase in the economics ministry’s official growth forecast.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this