Germany’s federal and state government tax revenue rose by 3.6% year-on-year to EUR 89.3 billion ($105.25 billion) in March 2026, the finance ministry said in its monthly report on Tuesday, as reported by Reuters. The year-on-year comparison is skewed by one-off factors, including effects of import VAT and non-assessed taxes on earnings, and the ministry noted that without these factors, there would likely have been a slight decline. For the first quarter of the year, tax revenue increased by 0.9% from the same period in 2025, to EUR 224.2 billion. The report noted that the impact of rising energy prices is not yet clear for future readings, given the likely increase in VAT from higher prices, balanced against a possible decline in tax receipts due to lower energy consumption. The German government has halved its growth forecast for 2026 to 0.5%, while raising its inflation projections due to the conflict in Iran.