Budget: Low revenue in January
“Omicron” covid variant and “Elpida” severe weather front opened holes in the state coffers
January deviated from the budget targets, abruptly interrupting the good course of 2021. The provisional data, which are expected to be announced next week, will reportedly show a lag behind the targets. The taxes that flowed into the state coffers are less than forecasted as the “Omicron” mutation froze economic activity before the severe weather front “Elpida” managed to inflict the decisive blow.
The “Elpidas” snowstorm shut consumers in their homes in the last week of January and moved the deadline for payment of VAT in January to February 4. “Omicron” brought restrictions on food service and entertainment, affecting tax revenues, which moved to lower levels, while the reduced receipts from road taxes also had a negative impact. The extension given to their payment deadline expires on February 28 and according to information, the owners of vehicles left in December for the later payment of about 500 million euros.
The financial staff hopes that there will be no further deterioration and that February will be a better month as by the end of the month they are expected to collect:
– The road tax of 2022 by the owners of vehicles that have delayed their payment for the last moment.
– The first installment of the 36-72 installment arrangement for pandemic debts. The regulation concerns debtors who have been affected by the pandemic and debts that were confirmed from March 2020 until July 2021.
– The income tax for the retroactive payments received by retirees in 2020. Specifically, by February 15, the pensioners will have to either pay or adjust in up to 48 installments the income tax for the retroactive amounts they received in 2020 and submitted an amendment declaration by 31/12/2021 for which the deed of administrative determination of the tax was issued before the New Year.
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