The wage mass and the withholdings for pensioners power the rise in income from the public coffers. Until June, income grew close to 20%, with a particularly dynamic behavior, as revealed by the Tax Agency, of the direct personal income tax, which rose by 15.8%. The increase in wages and pensions, together with the consequent increase in the effective rate, raises this item which, however, is rising more moderately.
For its part, Corporate Tax continues to make a significant contribution to growth in the period due to the drop in refunds made for the 2020 financial year. With regard to indirect taxes, the rise in prices and the upward trend in consumption have kept VAT as the main figure with the highest rate of increase so far this year and, therefore, with a greater contribution to aggregate growth.
In keeping with the behavior of personal income tax revenue, tax revenue for the month of June moderated its growth to the most contained level since January. Thus, revenues reached 9,912 million, which is 10.9% more than the same month of 2021; yes, the accumulated average in the first months of the year exceeded 20%.
Impact of the anti-crisis decree
Inflation supposes a short-term impact that improves collection behavior in indirect taxes such as VAT, due to the increase in prices and as a consequence of the percentage paid; or taxes such as personal income tax, which benefit from the rise in wages.
What was not included in the Government’s plans was having to deal with inflation through the disbursement of public spending to take measures to try to stop the escalation of prices of some specific bills.
The block of measures that continues to subtract the most income are those approved to mitigate the effects of the significant increase in the price of electricity, as revealed by the Treasury portfolio report. In relation to last month, an additional loss of income of almost 300 million is estimated, 148 million in the Special Tax on electricity and 143 million in VAT.
Since January – when the abolition of the special tax was already in force – these measures have subtracted 3,987 million from the collection, and if the entire period since they began is taken into account, the loss rises to 5,592 million.
Click on the ‘Tobin tax’
The Government forecasts when it launched the rate on Financial Transactions, known as the Tobin rate, was to collect 1,000 million annually. Although it has been in force since January 2021, it was in the month of June of last year when the first income was registered, which corresponded to the accrual of the period between January and May.
Therefore, the differential effect of this measure until June 2022 is reduced to the income collected in January of this year to 26 million.
Other measures included in the General State Budgets (PGE) were surgical rises in personal income tax, which contribute 13 million, or the rise in VAT on sugary drinks and sweeteners, which increased income by 75 million euros or the rise in certain taxes digital (139).
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