Thursday December 18, 2014 Search
Weather | Athens
17o C
10o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Why revenues missed the target for January

Revenues from the various taxes on property have registered a massive 77.7 percent yearly increase, according to January figures, being the most reliable source of inflow for public coffers, along with income tax.

By Prokopis Hatzinikolaou

The Greek economy’s deepening recession is evident in budget data for the year’s first month, as revenues from value-added tax declined by 17.4 percent and while income from special consumption taxes fell 38 percent short of the budget target.

This development has generated major worries at the Finance Ministry, which is realizing that the economic contraction may actually be bigger than forecast in 2013. Total revenues in January amounted to about 4.05 billion euros, according to provisional figures issued by the ministry, compared to a forecast for 4.357 billion. As a result the shortfall amounted to about 307 million euros.

While the definitive figure for 2012 revenues from VAT was 14.95 billion euros, the forecast for this year is 13.7 billion. Although the ministry had expected a decline in consumption, the January data show a greater-than-forecast contraction.

Revenues from the special consumption tax on fuel were 1.1 percent higher than the budget target last month, but VAT revenues from fuel were 12.7 percent lower, a difference which ministry officials attribute to the delay in VAT payment while the consumption tax is paid directly to the state. They also point to soaring tax evasion, which has resulted in big revenue losses for public coffers.

Another major blow to the budget is the significant decline in tobacco consumption tax revenues. Takings from the tobacco tax in January were a considerable 40.8 percent below the budget target. This came at the same time as the increase in the special consumption tax. Ministry sources again attribute the lost revenues to the huge increase in cigarette smuggling, while more and more smokers are purchasing the tobacco directly from the producers. They add that in the next few months the ministry will begin inspections to track down farmers who are selling tobacco illegally.

In total, January revenues missed the target by 7.2 percent. The reduction would have been even greater had it not been for direct taxation, which had increased significantly. Income tax grew by 9.6 percent, while property taxation soared by a staggering 77.7 percent, providing a much-needed boost to budget revenues.

A similar development is expected this month, too, given that the last installment of income tax (paid in seven portions) will be paid, while property taxes will be paid throughout the year. Property owners are still paying the property tax (FAP) for 2010, while payment of the installments for the 2011 FAP will start next month, and notices for the 2012 version of the FAP will be sent from June.

By May, all property owners will also have to have paid the remaining two or three installments of the special levy on properties which was tagged on to electricity bills for 2012. After all that, the new single property tax for 2013 will start coming due, in the second half of the year.

Despite the lagging revenues in the year’s first month, the midterm fiscal plan tabled on Friday in Parliament provides for an increase compared to the original budget by as much as 405 million euros. Therefore, the revenues for 2013 will come to 50.8 billion, up from a budget target for 50.4 billion. The plan suggests that the increase will derive both from direct and indirect taxes.

ekathimerini.com , Friday February 8, 2013 (22:08)  
German parliament supports extending Greece bailout
Greek bond yields fall after ´friendly´ Schaeuble comments
No risk of contagion from Greek vote, Italy´s FinMin says
German finmin says Greece in better shape than expected
Tsipras wants agreed solution with eurozone, not unilateral moves
Greece's radical leftist Syriza party will cancel austerity and ask Europe to erase a big chunk of Greek debt to free the country from the dark spell it has fallen under, leader Alexis Tsipr...
Austerity curbed human rights in Greece, report says
Austerity measures adopted as a result of the economic crisis have adversely impacted human rights, including the rights to work and health, noted a report released on Thursday by the Intern...
Inside News
BASKETBALL
Pappas helps Greens overcome Aris
An impressive Nikos Pappas averted an upset by Aris and ensured Panathinaikos retained its perfect record on Tuesday, one day after Olympiakos thrashed Panionios at Nea Smyrni for the Basket...
´Wee Jay´ and idol Georgios Samaras receive Greek sports journalists´ award at Athens gala
A 10-year-old Irish fan of Greek striker Georgios Samaras was in Athens on Monday at the invitation of the Greek Sports Journalists' Association, which honored outstanding achievements in sp...
Inside Sports
COMMENTARY
Europe´s drama in Greece needs final act to avoid tragedy
Judging from Wednesday's vote in the Greek parliament, Prime Minister Antonis Samaras may not get the mandate he wants to keep economic austerity measures in place and avoid defaulting on th...
COMMENTARY
A pointless battle
The public closely watched the first act in the three-part drama of Parliament’s election of a new president yesterday. The result was below the expectations of the New Democracy-PASOK coali...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Tsipras wants agreed solution with eurozone, not unilateral moves
2. German parliament supports extending Greece bailout
3. Greek bond yields fall after ´friendly´ Schaeuble comments
4. No risk of contagion from Greek vote, Italy´s FinMin says
5. Austerity curbed human rights in Greece, report says
6. German finmin says Greece in better shape than expected
more news
Today
This Week
1. Europe's drama in Greece needs final act to avoid tragedy
2. Election looms as Samaras fails to win vote for president
3. Kammenos maintains firm position, says general election is 'one-way street'
4. What SYRIZA says about Greece’s economy, its debt and the euro
5. Merkel says Russia sanctions to remain unless Putin yields; Greece's prospects 'better than two years ago'
6. Eurozone bond yields fall as 'patient' Fed pleases investors
Today
This Week
1. Juncker warns Greeks against voting 'extreme forces' into power
2. Romanos and the dilemma
3. Samaras summons bond vigilantes with euro exit talk
4. A friendly yet firm message from Pierre Moscovici
5. East Europe scrambles for energy after Putin kills South Stream
6. Anarchist Nikos Romanos ends hunger strike
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.