By Chrysostomos Tsoufis

No more accuracy budget. This is the main conclusion from the evaluation of the data of the implementation of the state budget so far in the first 8 months.

Between January and August last year, the excess of VAT and income tax revenues was almost the same:

-€1.45 billion the excess from VAT

-€1.76 billion the excess from income tax

This year the situation has changed dramatically – even if the opposition is still using the accuracy argument – ​​as the VAT revenue excess is less than half that of the income tax:

-€800m from VAT

-€1.71 billion from income tax

In fact, as far as VAT is concerned, in the last year, the VAT of energy products also “turned” negative – €97m (+€317m last year) as this year both the price of oil and natural gas are in the first 8 months on average much lower than last year, especially natural gas.

Of course, consumption has also fallen, as despite the lower prices, the tax on energy products is also negative by €115 million, which is unitary and not proportional, i.e. it is imposed as a fixed amount on every liter sold, on every KWh consumed. In any case, with both negative taxes it is practically impossible to discuss reducing them without simultaneously imposing another tax as compensation for the revenue.

However, the government does not wish to increase other taxes due to a political choice, but also because it knows practically that the best solution to increase revenues is development. This year’s – like last year’s – income tax overrun comes not from new taxes or an increase in old ones but from a 5.9% growth rate with more jobs and therefore more people filing tax returns. And all this while at the same time there were reductions in charges such as the solidarity levy for the private sector and the reduction of insurance contributions by three units.

As we wrote here at skai.gr, all this revenue excess has already been used up – 2 additional budgets, market pass, youth pass, flood compensations – and there is currently no scope for other benefits.

In this light, the course of the budget in the next 3 months is of crucial importance. A possible increase in the revenue surplus could allow the government to extend the reduced VAT on culture, tourism, sports and beyond the end of the year or even give some discount at the pump and heating oil if the international prices of the black of gold remain at these levels.