Improved tax collection and new rules against tax evasion helped bring to this year’s state budget an extra €154 million in comparison to what the treasury expected. This figure represents 0.2 percent of GDP. During the following years, the higher collection should be the result of more effective collection that has to cover about 60 percent of the additional revenue.
The rest of the additional revenue can be attributed to new legislation. “Compared to the September prognosis, we have increased the estimate of the success of collection of the value-added tax, as well as social and health insurance contributions. On the other hand, there was a mild correction in the personal income tax revenue and revenue from withholding tax.”, reads a report from the Finance Ministry’s Financial Policy Institute. Collected value-added tax in the third quarter of this year increased by 12.4 percent.
