Germany to raise tax intake forecast as economy recovers

The German Finance Ministry has increased its tax intake forecast to allow for accelerated economic growth and expects to collect 7.1 billion euros more than previously expected between 2015-2018, weekly magazine Spiegel reported on Sunday.
A spokeswoman for the ministry declined to comment on the report but said the cabinet was due to discuss the 2014 budget and future financing on March 12, and the tax intake forecast would be announced then.
The government expects economic growth of 1.8 percent this year and 2.0 percent next year. High levels of employment and sales tax are expected to boost the intake.
Last November the Finance Ministry estimated the central government would collect 277.5 billion euros in 2015, an increase of 3.2 percent on 2014's forecast tax intake of 269 billion euros.
Senior German official brands country's trade surplus 'unfair'
A leading German foreign ministry official has called the country's massive trade surplus "unfair", joining others in Europe and the United States in criticising Germany for not boosting its domestic demand and dismantling global imbalances.
Europe State Secretary Michael Roth, a Social Democrat (SPD), became the first senior government official to speak out against the surplus, which has been defended by Finance Minister Wolfgang Schaeuble and Chancellor Angela Merkel, both of whom are Christian Democrats.
"Just as the deficit countries bear the responsibility to improve their situation, so the so-called surplus countries also bear a responsibility," he said, in comments reported by Spiegel Online.
"Through the growing low wages sector and increase in flimsy employment contracts we have created an unfair advantage compared to our partner countries."
He added that Germany must do more to reduce imbalances within the European Union.
Germany's trade surplus reached a new record last year of 198.9 billion euros ($273.4 billion).
Europe's largest economy has come under international pressure for relying too heavily on foreign markets for growth and not fostering domestic demand which would benefit struggling trade partners within the 18-member euro zone.
Schaeuble argues Berlin has more than halved its current account surplus with the euro zone as a share of gross domestic product since 2007 and is relying more on domestic demand than trade to drive growth.
Domestic demand is set to strengthen this year.