ECONOMY

Election period may affect tax payments and inspections

The government is concerned about state revenues in the last month of the year as they may be affected by the torrential political developments.

The tax collection mechanism will have to operate in an environment that has proved easily influenced by the political climate – in other words seeing inspections of taxpayers and corporations reduced during election periods.

Sources say that budget revenues in November came in 600 million euros below the target included in the 2015 budget, which raises the shortfall of the January-November 2014 period to 1.8 billion euros.

The Finance Ministry is worried taxpayers may choose not to pay their dues this month, which include the fourth tranche of the single property tax (ENFIA) and road tax. Ministry officials now expect the revenue shortfall to reach 2.5 billion euros at year-end.