Tuesday March 3, 2015 Search
Weather | Athens
20o C
11o 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)  
Greeces bailout extension no panacea for struggling bond market
Greece approved as recipient of EBRD funding through 2020
Eurozone bond yields pinned at lows with ECB eyed
Varoufakis to make six reform proposals at Mondays Eurogroup
Notice on military maneuvers in Aegean was a mistake, Turkey says
Turkey says a recent notice seeking to reserve a large swath of airspace over the Aegean Sea for military maneuvers was issued by mistake and then canceled. A statement by Foreign Ministry S...
Former SDOE chief to testify in Papaconstantinou trial
The former head of the Financial Crimes Squad (SDOE) Yiannis Kapeleris [photo] was among witnesses expected to testify at the trial of former Finance Minister Giorgos Papaconstantinou on Tue...
Inside News
BASKETBALL
Waters turns from zero to hero for Kolossos Rhodes
For 40 minutes he was a real disappointment for his coach, Aris Lykoyiannis. His shooting rate was a miserable 1 in 10 two-point shots and he had made no three-pointers. On top of that he co...
SOCCER
Super League clubs promise to combat violence, again
The Super League clubs agreed on Monday to a blueprint of proposals for combatting violence in soccer grounds and will present it to Deputy Minister Stavros Kontonis to ask for the top fligh...
Inside Sports
COMMENTARY
The Greek tax drama
Numbers alone can never interpret reality, not even a strictly financial one. Besides, the art of creative accounting has a number of fans in this country, many more, for the time being, tha...
EDITORIAL
Mixed signals
Ankara finally realized, perhaps also thanks to international pressure, that its latest gesture was too provocative by any measure. Meanwhile, however, it was welcome to see the reflexes of ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Notice on military maneuvers in Aegean was a mistake, Turkey says
2. Greeces bailout extension no panacea for struggling bond market
3. Greece approved as recipient of EBRD funding through 2020
4. Former SDOE chief to testify in Papaconstantinou trial
5. Eurozone bond yields pinned at lows with ECB eyed
6. Varoufakis to make six reform proposals at Mondays Eurogroup
more news
Today
This Week
1. The Greek tax drama
2. Draghis QE moves to starting line as economic outlook brightens
3. Convicted Conspiracy of the Cells Fire member to face magistrate
4. Mixed signals
5. Varoufakis to make six reform proposals at Monday's Eurogroup
6. Investor survey shows 38 pct chance of eurozone break-up in 12 months
Today
This Week
1. Greece to make international protest over Turkey reserving Aegean air space
2. A fierce battle looms
3. SYRIZA feeling the pain
4. Spain said to lead push to hold Greece to terms as Podemos grows
5. The unlikely winners of Greece's surrender on euro
6. Tsipras reversal draws Greek sympathy as party rumblings rise
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2015, H KAΘHMEPINH All Rights Reserved.