FX.co ★ German Tax Revenues Rise 3.6% in March

Germany’s federal and state tax revenues rose by 3.6% year-on-year to EUR 89.3 billion (USD 105.25 billion) in March 2026, the finance ministry reported in its monthly bulletin on Tuesday, according to Reuters. However, the year-on-year comparison is distorted by one-off effects, particularly those related to import VAT and non-assessed taxes on earnings. The ministry noted that, excluding these special factors, tax revenues would probably have shown a slight decline.

In the first quarter of 2026, tax revenues increased by 0.9% compared with the same period in 2025, reaching EUR 224.2 billion.

The report also highlighted that the implications of rising energy prices for future tax revenues remain uncertain. On the one hand, higher prices are likely to boost VAT receipts; on the other, they may depress tax income if energy consumption falls.

The German government has cut its 2026 growth forecast by half, to 0.5%, while raising its inflation projections, citing the economic fallout from the conflict in Iran.