ECONOMY

Tax revenues, expired debts to test budget

tax-revenues-expired-debts-to-test-budget

The reduction in state revenues combined with the expired dues created by households and enterprises in January and February point to a negative course for this year’s budget, although April tax takings did not fare as poorly as feared.

Sources tell Kathimerini that tax revenues last month posted a reduction of 24-25 percent, with losses contained below 1 billion euros; this was thanks to taxes of €750 million being paid on the very last day of April instead of the €250 million the Finance Ministry had expected. Original estimates had pointed to a slide in tax revenues last month by about 35 percent.

Of course the drop in collections remains significant and if the new expired arrears of the first couple of months are added, then the 2020 budget looks set to veer off course. After all, tax payments have been suspended until end-August and asset confiscations by the state have been frozen due to the pandemic.

Independent Authority for Public Revenue figures showed overdue arrears rose €1 billion in February, taking this year’s total to €1.574 billion.