The increased tax revenue which, as everything shows, will provide support to the state budget, they will not come from the imposition of additional taxes, but will be based on the even greater collection of income from the income tax, which primarily affects the employed and not the wealthy. Which raises given to civil servants and private sector workers through the increase of the minimum wage will fill the coffers of the state and further empty the income of popular households.
The second parameter of strengthening government revenues is estimated to be related to the limitation of tax evasion, for which it is estimated that the interconnection of POS and cash registers can prove to be an important tool.
Also, an additional element is the contribution to the increase in public revenues, from the additional growth of the economy, which will however be marginally lower due to inflation.
This trend is also confirmed by the data released a few days ago by the Ministry of National Economy and Finance for the execution of the budget in the first 3 months of the year, as it is clearly seen that the only source that is over-paying is that of income tax, with the lion’s share to come from businesses.
However, the revenues from the VAT remain high, affecting in this case also the small and medium incomes.
According to what Alpha Bank predicts in the Economic Developments Bulletin, “2024 is expected to continue the rising trend of government revenues in Greece, with an estimated amount of 63 billion euros. The main factor of this increase is expected to be taxes on goods and services, as well as income taxes.”
In particular, Alpha Bank mentions the strengthening of incomes, through which the additional income tax will be an indirect benefit for the budget.
What the first figures for 2024 show
The trend of increasing tax revenues from all individual categories, but mainly from income tax, is fully confirmed for the 3-month official data.
* Revenues from the “Taxes” category amounted to 14.844 billion euros, recording an increase of 598 million euros or 4.2% in relation to the target set in the introductory report of the Budget for 2024. Specifically, for the main taxes of this category we observe the following:
1. VAT revenue amounted to 5.876 billion euros, showing a reduction of 16 million euros compared to the target.
2. The revenues of Special Consumption Taxes (SCT) amounted to 1.532 billion. euros, recording an increase of 5 million euros compared to the target.
3. Revenues from real estate taxes amounted to €260 million, showing a reduction of €19 million compared to the target.
4. Income from income taxes amounted to 5.105 billion. euros, recording an increase of 563 million euros compared to the target. Of this amount, Personal Income Tax increased by 66 million euros and Corporate Income Tax increased by 451 million euros compared to the target.
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