State Revenues Should Rise by €397 Million in 2016

(stock photo by TASR)

Bratislava, September 30 (TASR) – According to the Financial Policy Institute (IFP), which comes under the remit of the Finance Ministry, the state coffers should be infilled with more money this year, TASR learnt on Friday.

This is due to a change in estimates of revenues stemming from the collection of taxes and levies, which predicts an increase of €397 million or 0.49 percent of GDP when compared to the previous prognosis from June.

The biggest share (three fifths) of the increase is in tax collection of income tax from legal entities thanks to a growth in profitability. Collection of the value added tax improved as well.

Analysts have increased the estimates of tax and levy collection in the following years as well – by €558 million in 2017, by €649 million in 2018 and by €595 million in 2019. They’ve already counted on the legislative changes made by the Cabinet in August and September.

“The amendments to the legislation have increased the tax revenues between 2017-19 by between 0.1-0.2 percent of GDP in total,” analysts say. Additional revenues in 2017 should be facilitated by increased levies from regulated sectors in the amount of €91 million and increased rates of tobacco products that should generate further €30 million.

Conversely, the increase in the flat rate expenditures cap for self-employed people from 40 to 60 percent of total costs will cut revenues by €13 million in 2017, €21 million in 2018 and €25 million in 2019.