Sunday October 26, 2014 Search
Weather | Athens
17o C
13o 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 economys deepening recession is evident in budget data for the years 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 years 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)  
Nicosia says reforms are bringing results
TAIPED waits for green light from Eurostat
Trade deficit shrinks on big drop in imports
SMEs unable to claim subsidies
Samaras pledges action after flash floods in Athens
Authorities began on Saturday assessing the damage done by flash floods in various parts of Athens a day earlier, with Prime Minister Antonis Samaras pledging that all those affected would b...
No court hearings for civil cases
Greek courts are to stop conducting hearings, which include witness questioning, for civil cases, according to plans drawn up by the Justice Ministry. Kathimerini understands that in a bid t...
Inside News
BASKETBALL
A win is a win is a win for Olympiakos
A bad Olympiakos defeated a worse Laboral Kutxa 63-57 to make it two out of two in the Euroleague on Friday. In a game where the two teams had an overall field goal rate of about one in thre...
SOCCER
Panathinaikos snatches point at Eindhoven
Panathinaikos offered its fans a glimpse of its glorious past in European competitions snatching a draw at PSV Eindhoven, on an otherwise bad night for Greek soccer in the Europa League, as ...
Inside Sports
COMMENTARY
End of reason, end of humanity
The effects of a slew of new and increased taxes introduced since the start of the crisis were first observed in the wages of those still fortunate enough to have jobs, who saw their take-ho...
EDITORIAL
Banks need to step up
What has been leaked so far regarding the results of the stress tests on Greeces lenders, which are due to be published on Sunday, appears positive. Greece needs a healthy, private banking ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Nicosia says reforms are bringing results
2. Samaras pledges action after flash floods in Athens
3. No court hearings for civil cases
4. Greeces lenders seem adamant that govt must act on bailout commitments
5. Future of Attica trash set to become clearer
6. Policeman admits to murder of his cousin-in-law
more news
Today
This Week
1. End of reason, end of humanity
2. Samaras pledges action after flash floods in Athens
3. Banks need to step up
4. Greeces lenders seem adamant that govt must act on bailout commitments
5. No court hearings for civil cases
6. Nicosia says reforms are bringing results
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Greeces closed society is central to its current malaise
3. Greece must stick to reforms, says Schaeuble
4. At least 11 banks to fail European stress tests, three in Greece, report says
5. Cyprus to block Turkey's EU talks after EEZ violation
6. Stop moaning and get in the game
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.