Tax revenues up 7.4% on year

The Latvian State Revenue Service collected €5.949b in taxes in the first nine months of 2016, which is 0.8% or €48.524m more than planned. Furthermore, the increase in collected tax amounts to 7.4% on year in the same period, the tax service told the press Friday.

The steepest growth was recorded for excise tax revenue, which rose by €48.56 million or 8.2% compared to the first nine months of 2015. Excise tax revenue in January-September 2016 reached €639.442m, exceeding the target by 4.4%.

Personal income tax revenue increased 5.2% year-on-year which is the steepest growth over the last three years. The growth was largely due to changes in people's income. Revenue from personal income tax totaled €1.11b in the first nine months of 2016 but was 1.2% short of the target because of the increase in personal income tax refunds.

Revenue from value added tax (VAT) was €1.484b in the first nine months of this year, falling 1.1% short of the target. Nevertheless, VAT revenue has increased 5.7% on-year.

The tax service said that VAT revenues fell short of the target due to sluggish GDP growth in 2016.

The tax revenue target for the nine months of 2016 was €5.901b. The annual tax revenue target for this year is €7.95b.

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