Mecklenburg-Western Pomerania: Tax estimate: 488 million euros more income for the country

Schwerin (dpa/mv) - The state of Mecklenburg-Western Pomerania can expect 488 million euros more income this year than was expected in May.

Mecklenburg-Western Pomerania: Tax estimate: 488 million euros more income for the country

Schwerin (dpa/mv) - The state of Mecklenburg-Western Pomerania can expect 488 million euros more income this year than was expected in May. In the coming year, the predicted plus will amount to 229 million euros, said Finance Minister Heiko Geue (SPD) on Friday after the state's calculations for the latest tax estimate. The municipalities in the north-east can therefore expect additional tax revenue of 74 million euros this year and 50 million euros in the coming year.

The working group on tax estimates assumes that the federal, state and local governments will take in around 126.4 billion euros more by 2026 than expected in May. This year, however, tax revenue is expected to be 1.7 billion euros lower than predicted. The reason for the rising tax revenue is, among other things, the high inflation rate: if goods become more expensive, the revenue from the taxes that have to be paid on them also increases. Above all, the value added tax flushes more money into the coffers.

MV finance minister Geue is not entirely happy. He explained that the increased income expectations were offset by considerable inflation-related additional expenditure on energy prices, interest rates, personnel costs and aid for consumers and the economy. Therefore, there would be no additional room for maneuver for the budget.