BERLIN, Oct 26: Germany’s tax revenues are likely to rise more than expected in 2013 and beyond, newspapers reported on Saturday, potentially giving the new government financial leeway and playing a role in coalition talks focused on the economy and energy.

Tax income, boosted already this year by a solid labour market and robust wage increases, could be more than three per cent higher than last year, when it was roughly 600 billion euros, Frankfurter Allgemeine Zeitung reported in its Saturday edition.

That would be about 3bn euros more than the 615.2bn predicted in the last tax estimates in May. In the years to 2018, additional tax take could total as much as 100bn euros, the newspaper reported.

Chancellor Angela Merkel’s party has been focused on balancing the public budget, while the centre-left has campaigned on the need to raise taxes to boost investment and to introduce a nation-wide minimum wage.

Die Welt newspaper reported even bigger tax numbers, also citing tax experts close to the estimates, with an additional seven to eight billion euros in revenues this year. The finance ministry declined comment on the reports and a spokesman referred to the next tax estimates due on Nov 7. Focussed on balancing its budget, Germany spent less on infrastructure over the past decade than was needed to keep it in working order, let alone upgrade it. Government spending on infrastructure fell to 1.5pc of gross domestic product (GDP) from 2pc in 1999 and well below the European Union average of 2.5pc, according to DIW data.

The additional income will be welcome news for both parties, who are debating issues at the core of a potential coalition.

Merkel’s conservatives will push for a reduction in Germany’s debt level to below 60pc of GDP within 10 years from the current 81pc, according to a party document obtained by Reuters on Friday.—Reuters