Economy

The budget “flies” with the wings of ENFIA, VAT and income tax

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ENFIA and income tax literally took off the tax revenues in May, leading to an excess of almost 1.1 billion euros

of Chrysostomos Tsoufis

The final budget execution figures for May explain how the government found the extra budget to announce the 2nd round of the July-September fuel subsidy.

ENFIA and income tax tax revenues literally took off leading to an excess of almost € 1.1 billion.

The 811 million euros come from the “pre-collection” in the essence of ENFIA, since the budget provided for its collection from September and not from May, while there were many who saw significant reductions in their bills and rushed to pay in a lump sum.

The 142 million euros is the excess from the income tax, while the picture would be even better if the tax refunds did not exceed the estimates by 151 million euros.

In total, in the first five months of the year, tax revenues have already exceeded 20 billion euros, increased by 2.8 billion euros against the target, almost as much as an ENFIA.

This is because inflation has inflated VAT revenues – as many markets are inelastic – by 612 million euros, while income tax has increased by 550 million euros.

At the same time, 549 million euros, reduced compared to the target, appear as expenses. As a result, the primary deficit is kept below just under € 1.5 billion, down € 2.4 billion below budget forecasts.

Especially for fuel revenues the balance remains marginally positive. Revenues from the VAT, which is a unit tax and not proportional, is imposed as a fixed amount per liter sold is lower than estimated by 137 million euros.

This shows that there is a reduction in consumption, but not to the level supported by the majority of market professionals. On the other hand, the VAT revenues imposed on the inflated prices are positive by 145 million euros.

The Ministry of Finance clarifies that the entire fiscal space that has been created has been utilized in favor of the taxpayers. Any additional intervention – which of course is not ruled out – will be made if budgetary margins are created from now on.

budgetExcessnewsSkai.gr

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