Germany raises tax revenue forecast

The German finance ministry expects its tax revenues this year to be 6.5 billion euros (8.3 billion dollars) higher than originally forecast because of a stronger than expected economic recovery, Der Spiegel reported in its edition to appear on Monday.

Tax revenues from the federal state, the regions and local districts are now expected to rise to 463.9 billion euros in 2006.

Next year they are forecast to rise to 493.6 billion, largely thanks to an increase in value added tax which is scheduled to take effect in January 2007 and generate 19.4 billion euros in extra revenue, the weekly magazine said.