Concerns over decline in state tax revenues
The next revenues crash test is the end of July, when the first income tax instalment must be paid, as well as VAT tax for the second quarter of 2018
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The government’s economic team is troubled by the course of tax revenues, which have been declining.
Tax revenues in the first five months of 2018 are increased over the same period in 2017, but that is mainly due to citizens voluntarily revealing assets and to seizures of assets from debtors.
The next revenues crash test is the end of July, when the first income tax instalment must be paid, as well as VAT tax for the second quarter of 2018.
The revenues from the first instalment of income tax amount to one billion euros.
The situation will become more difficult for taxpayers in September, when payments of the ENFIA real estate tax begin. There will be real estate tax hikes, after the new real estate tax valuations nationwide, for nearly one million taxpayers.
Regarding direct taxes from January-May, revenues reached 101.76 percent of the target in 2018, compared to 100.71 percent in 2017. That, however, is due mainly to the positive increase of income tax revenues by 133mn euros in the first five months of 2018, compared to the same period in 2017.
With indirect taxes, revenues were 100.97 percent of the target, compared to 103.49 percent in 2017. That is due mainly to the substantial increase in consumer taxes (worth 187mn euros), indirect POE (Federation of Employees at Public Economic Bureaus) taxes (149mn euros), and remaining transactional taxes (78mn euros).
There has also been a 141mn euro drop in VAT tax revenues, compared to the same period in 2017.
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