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Wage growth supports taxes (October 2018)

The current forecast increases tax revenues by 560 to 654 million euros between 2018 and 2021 (0.6% of GDP). While the increasing collection efficiency fosters tax growth in particular in 2018, macroeconomic development via stronger wage growth contributes significantly from 2019 onwards. Better revenue aids mainly municipalities and the Social Insurance Company. On the basis of a better corporate tax settlement, we also revise revenue upwards for the year 2017.