State takings beat projections

State revenues showed a significant increase in the year’s first four months, while energy hikes have led to a decline in fuel consumption.

On Wednesday budget execution figures showed that value-added tax takings came in 755 million euros above the budget target and €1.37 billion more than the same period last year.

Finance Ministry officials expect that trend to continue in the coming months, but do note that the increase in takings will also be boosted by the major increase in tourism anticipated. They also point out that a greater number of enterprises and freelance professionals have been paying their VAT dues on time in recent months, with the compliance rate climbing to 92.48% in March, per the Independent Authority for Public Revenue.

However, there is concern over the decline in consumption, as recorded in the Special Consumption Taxes: The ministry had projected revenues of €1.376 billion for January-April, but the special consumption taxes only raised €1.268 billion, a shortfall of 7.8%.

On the other hand, revenues from income tax were €409 million higher than expected, at €1.748 billion.