ECONOMY

Record low in incomes seen in 2020

record-low-in-incomes-seen-in-2020

For the first time in many years tax revenues are projected to drop below the 70-billion-euro level, while before the debt crisis of the 2010s they had been amounting to some 105 billion per annum. The impact of the coronavirus crisis will also be felt in next year’s takings.

This year’s declarations concerning 2019 incomes will add up to an estimated 74-75 billion euros, including more than 14 billion in corporate revenues, while 2020 taxable incomes will range between 65 and 70 billion.

The collection of more than 50 billion euros from taxes next year is already considered wishful thinking, which means that any discussion about the fiscal targets and primary surpluses of the 2021 state budget would make no sense for now.

The only sources of taxable incomes that for the time being has not been affected by the Covid-19 containment measures are salaries in the broader public sector and pensions. These two sources offer about half of declared incomes – i.e. around 35-40 billion euros. All other sources have been affected and the extent of the impact remains to be seen. It is noted that the annual incomes of private sector salary workers come to 20 billion euros.