Tax inflow at snail’s pace

Direct tax revenues recorded a slight increase despite efforts to eliminate tax evasion and to extend contribution in the public and private sector.

According to Inland Revenue Department data released on Friday, revenue from direct taxes for the period January – August 2012 rose 3% or €37.7 million to €1188 million from €1150.3 million last year.

Until July, revenue had recorded an increase of 4%.

This slowdown is a burden for the Finance Ministry’s task, which hoped that the gradual improvement in revenue would improve the fiscal condition.

The Ministry expected that this year’s deficit would reach 3.5% of GDP but the government revised it to 4.5%.

Troika believes that deficit will reach 5.5% without measure taking.

Revenue from extraordinary contribution for defence surged 8% or €21.3 million to €289.1 million from €267.8 million.

Revenue from income tax of the self-employed rose 56% or €19.1 million to €52.9 million from €33.8 million last year. This increase is linked to tax amnesty.

An increase of €11 million is observed in revenue from income tax of the private sector employees to €240.8 million from €229.7 million.

On the other hand, revenue from income tax of the employees in public sector dropped €7.4 million to €131 million from €138.4 million last year.

This is the first time that the IRD provides data for the contribution of the private and public sector in direct taxes.

The extraordinary tax imposed in 2011 on the private and public sectors added €14,8 million to the state coffers while the contribution of the public sector to pensions reached €3,1 million.

The increase in revenues from corporate tax amounts to 2% to € 366.9 million from €360,5 million (an increase of €8,9 million).

An increase of €2.2 million is registered in revenues from property tax and €1. million in revenue from other taxes.

In contrast, a decline of €18.8 million is recorded in revenue from charges, € 11,6 million in capital gains tax revenues and €3.7 million in stamp duty.