FINANCE

Growth set to increase tax takings

growth-set-to-increase-tax-takings

The government anticipates a significant increase in consumption and income by 2025. The Finance Ministry estimates that tax revenues will get a boost of about 12.63 billion euros in four year’s time, mainly from income tax and taxation on goods and services.

The ministry calculates that from the tax sum of almost €45.53 billion this year, collection in 2025 will soar to about €58.16 billion.

The income tax will fetch €13.02 billion this year from households and enterprises, but bring in €19.6 billion in 2025; individual taxpayers will pay €9.56 billion in 2021 and €12.62 billion in 2025, while corporate tax will fetch €2.31 billion this year and €5.66 billion after four years despite the cuts to tax rates and the deposit.

Ministry officials note that the bolstering of state coffers is related directly to estimates for high growth rates in the economy.

As for property taxation, state revenues are projected to remain on the same level as this year, i.e. €2.62 billion, and possibly even slightly decline to €2.5 billion in 2025, thanks to the increase in properties and transactions taxed via the inclusion of more zones in the objective values system.