By Maria Martinez
BERLIN (Reuters) - Germany's federal and regional state governments' tax revenue fell strongly in July compared with the same month last year due to a sharp decline in revenue from sales taxes, the finance ministry said on Thursday.
The federal and state governments' tax revenue decreased by 7.9% year-on-year to a total of 63.8 billion euros ($70.91 billion) in July, according to the ministry's monthly report.
The tax revenue rose by 1.9% in January through July, when compared with the same period last year, and reached 477.8 billion euros.
The German economy unexpectedly contracted by 0.1% in the second quarter, showing the continuing struggles of the euro zone's biggest economy.
"Early indicators do not suggest an imminent dynamic recovery," the report said.
For full-year 2024, analysts forecast tax revenue will increase to 863.68 billion euros, up 4.1% from the previous year, according to the report.
The German cabinet passed in July an economic package that aims to rev up the economy and boost growth by more than half a percentage point in 2025.
Stronger economic growth thanks to the economic package should generate additional revenue of 6 billion euros next year, according to the estimates of the economy ministry.
($1 = 0.8997 euros)