Tax revenue plan met by 92.8% in first half of 2020

The general budget revenue plan administered by the State Revenue Service (VID) was completed by 92.8% in the first half of 2020, VID said on July 13.

The general budget revenues administered by VID during the first half of 2020 are EUR 4.71 billion. Following the state of emergency in March 2020 in order to stop COVID-19 spreading, when taxpayers had to significantly limit and certain sectors even halt their economic activities, the general budget revenues have decreased and are EUR 365.91 million less than expected.

Compared to the corresponding period of 2019, the general budget revenues administered by VID decreased by EUR 69.37 million or 1.5% during the first half of this year.

The largest reduction is for value added tax (VAT) revenue.

For the first half of 2020, VAT revenue is €1.13 billion, which is €0.11 billion less than the corresponding 2019 period. The biggest drop in revenue comes from taxpayers whose core business is related to sales, car and motorcycle repairs. There is also a significant reduction in revenue from taxpayers whose main activity is linked to electricity, gas supply, heating and air conditioning or accommodation and catering services.

There is also a sharp change in labor tax revenues, which, after a period of sustained growth no longer exceeds the level of revenue for the corresponding period of the previous year. The largest reduction in labor taxes in the first half of 2020, compared to the corresponding period of 2019, comes from taxpayers whose basic activity is related to transport and storage, as well as accommodation and catering services.

Mandatory national social security contributions for the first half of 2020 are €1.66 billion, which is €0.03 billion or 1.5% less than the 2019 period. 

The income tax revenue for the first half of 2020 is EUR 823.90 million, which is EUR 26.68 million, or 3.1% less than in this period in 2019. 

Excise duty revenue for the first half of 2020 is EUR 489.23 million, which is EUR 31.49 million, or 6,0% less than in the period considered in 2019, and is seen in almost all types of payments affected by the decrease in consumption. The biggest drop in revenue is excise tax revenue on alcoholic beverages. 

Not in all tax types, though, revenue has declined. The largest increase in revenue in the first half of 2020 compared to the corresponding period of 2019 is in corporate tax, mainly due to a fall in revenue in 2019, with a sharp increase in the amount repaid due to changes in tax arrangements. Corporate tax revenues for the first half of 2020 are EUR 110,33 million, which is EUR 100.96 million more than in the period considered in 2019. 

 

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