According to the monthly report released by the Federal Ministry of Finance on Thursday morning, tax revenues in September were 0.4% higher than those in the previous year.
The growth was primarily driven by taxes on capital gains. However, the receipts from payroll tax, corporate tax, and value-added tax (VAT) showed only moderate increases. In fact, income derived from assessed income tax was lower than that recorded in September of the previous year.
Specifically, payroll tax rose by 2.5% compared to the corresponding month last year, although this gain was weaker than in previous months. Regarding assessed income tax, while advance payments scheduled for September were 2% higher than the previous year, the total cash inflow decreased by 3.5% after accounting for refunds, outstanding payments, and carryovers from prior periods, the Ministry stated. This decline was mainly attributed to a reduction in subsequent payments compared to last year, coupled with a marginal increase in refunds and a slight decrease in prior-period carryovers.
VAT revenues similarly saw a modest rise of half a percent compared to September of the previous year. This persistent annual fluctuation in revenue continues to highlight the “revenue volatility” seen in year-on-year comparisons.
Nevertheless, the government is finding it increasingly difficult to meet the targets previously set in the latest tax estimate for 2026. That estimate projected a 1.2% increase for the full fiscal year, but only a 0.8% increase has been recorded in the completed months, from January through September. If the current trend persists, the nation risks falling short by over three billion euros of already planned revenue by the end of the year.
