The Finance Ministry on Monday announced it has sent an additional €244 million to local authority accounts. It's a promised package of money from corporate taxes that should help them cope with the energy crisis, growing inflation and legislative changes. To sum it up, towns and villages have received an extra €326 million from corporate tax since the beginning of the year. "The Finance Ministry esteems local government representatives, viewing them as key partners in social dialogue. This is also why the state allocated €789 million in total for them this year. The money will go from the budget, EU funds, as well as advantageous loan products," added the ministry.
Revenues from personal income tax were traditionally distributed among local authorities. They gained the right to a share of the corporate tax for the temporary period of 2023 and 2024 after Parliament in late 2022 approved an increase in the tax bonus to €140 per month for a period of two years. This increase will cause shortfalls in revenues from personal income tax. Originally, local authorities should have received their share from corporate tax gradually, in monthly instalments. However, Parliament in late March approved an amendment to the law on the distribution of income tax revenues to local authorities. In line with the amendment, local authorities will receive their entire share of this year's corporate tax by the end of April. Municipalities should thus gain €171 million and regional authorities €73.3 million.
Source: TASR
