Tax and levies collection estimated to increase in 2017

The state should collect more money in taxes and levies than expected this year and in the following years, too, indicates the tax prognosis released by the Financial Policies Institute (IFP) last week. It states that tax income is estimated to see a year-on-year increase by almost €150 million in 2017, by almost €200 million in 2018 and should grow even in 2019. The IFP increased its estimates due to the accelerating growth in levies income. The trend is also fuelled by the continuing growth of the labour market, which translates into rising household consumption that has seen its highest figures since 2008. Another parameter factoring into the prognosis is the approved amendment to the Income Tax Act, which is slated to adversely affect tax collection. The legislative change concerns in particular the introduction of a tax bonus for mortgages, the introduction of a non-taxable base for the spa industry, a super deduction for science and research, etc. Unexpected developments emerged, according to state analysts, in the development of corporate tax, which is to see yields higher by €58 million in comparison to the June prognosis.