Author: Maria Jesus fountain
This year, the Tax Administration observes moderate consumption and growth in private salaries
Data from collection from Tax agency which correspond to the first two months of the year show the moderation of spending on consumption and an increase of salaries in the private sector, higher than that recorded in 2022.
This week, the Ministry of Finance published collection reports for January and February, which, although not yet representative of the development of tax revenues during the year, still indicate a change in the trend in some parameters.
So, after the year 2022 in which inflation consumer spending grew (VAT collection increased by 17.3%), less pressure on prices led to “consumption moderation” which can be seen on income from VATwhich rose by 1.7% in the first two months of the year (reflecting end-2022 settlements).
In the same way, the data on withholding income tax, although limited – they correspond to the liquidation in January and exclusively from large companies – indicate salary acceleration: the first two months of this year saw 10.8% more revenue due to private sector shutdowns, and large companies reported a 5.3% increase in wages in January.
In the global context, Income tax collection in the first two months of this year increased by 11.8%.although the extension of the low-income cuts included in the budgets, which will take effect in March data, has not yet started to apply.
In addition to the development of consumption and withholding of personal income tax, the third key aspect that marked the development of collection in the first two months of the year – EUR 43,048 million, 1.6% more – was extraordinary returns related to deferred property tax (DTA).
The income tax increase for high earners ends with 339 million more in 2022
The Tax Administration also published the collection report for December in 2022the year in which EUR 255,463 million were deposited, 14.4 percent morethanks to the increase in consumer spending, the growth of wages and pensions, and the good results of company profits.
Along with the general data collected, the report includes the effect of some fiscal policy measures adopted in recent years, including an increase in income tax for high incomes, which made it possible to collect 339 million in 2022which almost reached the goal set by the Government (346 million).
The limitation of deductible contributions for pension plans allowed entry an additional HRK 352 millionfar from the 580 million foreseen in the budget, while the limit of the deduction of the exemption of dividends and capital gains from paid subsidiaries 333 million; an increase in the VAT rate for sweet and sweetened beverages by 75 million and an increase in the tax on insurance premiums by 46 million.
The cost of reducing electricity bills: 6.636 million euros
On the contrary, the tax measures that were adopted to mitigate energy inflation and reduce costs electricity bill EUR 6,636 million remains from the collection in the financial year 2022, mainly due to the impact of electricity-related policies.
The abolition of the tax on the value of electricity production cost HRK 3.399 million; reduction of the special tax on electricity by 1.705 million; reduction of VAT on electricity by 1.313 million and reduction of VAT on natural gas, wood and pellets by 219 million.
Source: La Vozde Galicia
I am Jason Root, author with 24 Instant News. I specialize in the Economy section, and have been writing for this sector for the past three years. My work focuses on the latest economic developments around the world and how these developments impact businesses and people’s lives. I also write about current trends in economics, business strategies and investments.
