Helena Melnikov_Reaktion

DIHK Chief Executive Helena Melnikov on the tax estimate for May 2025

Without growth, the state's financial flexibility declines.

"The latest tax forecast is a wake-up call: without growth, the state's financial flexibility declines. Two and a half years of economic stagnation are now visibly impacting tax revenue, especially business taxes which depend on economic activity. The fact that revenue hasn't decreased further is solely thank to the stable labor market, increased wages, and largely stable consumer demand."

15.05.2025 - "The latest tax forecast is a wake-up call: without growth, the state's financial flexibility declines. Two and a half years of economic stagnation are now visibly impacting tax revenue—especially business taxes which depend on economic activity. The fact that revenue hasn't decreased further is solely thank to the stable labor market, increased wages, and largely stable consumer demand.

However, it's clear: without an economic upturn, the government remains on shaky ground in the long term. The new federal government is now under significant pressure to promptly initiate the announced shift in policy. Growth must now be prioritized. Concrete measures are needed before the summer break: an immediate reduction of electricity tax and relief concerning grid fees, improved depreciation conditions for investments, visible reduction of bureaucracy, accelerated planning and approval processes, and faster implementation of public infrastructure projects. Additionally, the immediate action program should be supplemented by investments in digitalization, a modern and more efficient administration, and measures to expand the workforce supply.

Businesses are ready—they just need better conditions: lower energy prices, financial leeway for investments, and, above all, trust in reliable, growth-oriented policies. Only in this way can the economic turnaround be achieved—and the foundation for stable tax revenues ensured."

Key areas:
  • Öffentliche Finanzen
  • Konjunktur
  • Wachstum

Press Contact

Ehling, Sven_test

Sven Ehling

Spokesperson | Visual Communication