1.3 billion euros received as taxes in July

1.3 billion euros received as taxes in July
Photo: Pixabay

The increase in receipts is caused by labour taxes, tax changes and large transactions before and after tax increases.

According to Raili Roosimaa, ETCB’s Deputy Director General for Taxes, this year's tax receipts have steadily increased every month. “Increases in salary payments and a strong salary fund continue to be the main drivers of labour tax receipts, increasing by 5.4% compared to the previous year. During the year, tax receipts have also been significantly impacted by changes in tax rates and a decrease in incentives for natural persons," explained Roosimaa.

In seven months, the receipts of income tax of natural persons increased by 21%, i.e. by 289 million euros. The reason for the increase is the increase in the income tax rate and the cancellation of several tax incentives, as a result of which less income tax was refunded than in previous years.

Social tax receipts increased by 159 million euros compared to the same period a year earlier. The increase was driven by an increase in salary payments.

VAT receipts boosted by an increase in the standard VAT rate

In seven months, 161 million euros more VAT was collected than last year. The new standard VAT rate, which entered into force in July, has had a direct impact on receipts, which increased by 28 million euros compared to July last year. “The increase in VAT receipts has been influenced by price increases, the significantly higher receipts in June before the increase in the VAT rate, as well as the new rate itself that entered into force in July,” said Roosimaa.