Friday April 18, 2014 Search
Weather | Athens
15o 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 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)  
PPC to issue corporate bond of 500 mln
Primary surplus continued by end-March
Eurobank eyes top Core Tier 1 level in Greece
Tourist spending up 17.3 pct
Greece offers to help find Turkish F-16 lost in 1996
Greece officially offered on Thursday to assist Turkey in its efforts to locate and salvage a Turkish Air Force fighter jet which crashed in the Aegean almost 20 years ago. Greek Defense Min...
Talks lined up in wake of ‘shameful’ soccer scenes
The government has pledged to meet with soccer officials after Easter to tackle unruliness in the game following wild scenes at the Greek Cup semifinal between PAOK and Olympiakos in Thessal...
Inside News
BASKETBALL
Former Red Bourousis wrecks Olympiakos´s hopes for a break
Olympiakos tried harder in Game 2 of the Euroleague play-offs in Spain, and Real Madrid was not as good on Thursday as in Game 1, but the Spaniards still emerged victorious on the night with...
SOCCER
Greek soccer turns fishier than ever
Soccer in Greece reached new lows in scenes unseen since the national team’s triumph in Euro 2004, as PAOK and Olympiakos served up a cup semifinal with PAOK emerging as the winner and the s...
Inside Sports
COMMENTARY
The placebo effect and the economy
Among the greatest mistakes made in the years of Greece’s hard landing is that citizens did not get the chance to sense that aside from austerity and pain the economic adjustment program als...
COMMENTARY
Ukraine is a crisis—but not a Cold War
Given Russia’s annexation of Crimea, the imposition of US and European sanctions, and the potential for more escalation in Ukraine, we are witnessing the most important geopolitical events s...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Former Red Bourousis wrecks Olympiakos´s hopes for a break
2. PPC to issue corporate bond of 500 mln
3. Greece offers to help find Turkish F-16 lost in 1996
4. Primary surplus continued by end-March
5. Eurobank eyes top Core Tier 1 level in Greece
6. Tourist spending up 17.3 pct
more news
Today
This Week
1. Greece startup leaders say they can’t break jobless cycle alone
2. Ground-breaking Good Friday mass signals thaw in Cyprus
3. Mayoral candidates clash over Athens mosque plans
4. Seven arrested over Toumba violence
5. Greek current account deficit widens in February
6. National Bank of Greece plans senior unsecured bond sale
Today
This Week
1. Bomb explodes outside Bank of Greece
2. CCTV footage from Nigrita Prison shows signs of inmate torture [Video]
3. Samaras sees no need for third bailout
4. Car bomb explodes outside Greek Central Bank building, no one hurt [Update]
5. Parties start announcing candidates for European Parliament elections
6. Greece's market return mirrors return of tourists
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.