Tax revenues rise 11% y/y in Jan-Oct.

Tax revenues rise 11% y/y in Jan-Oct. Net tax revenues collected in the first ten months of the year amounted to ALL 64bn (EUR 522mn), translating into an annual growth of 11%, showed the latest statistics of the General Taxation Directorate. October alone added some ALL 7.4bn to overall revenues, showed the data. VAT and the tax on corporate profit each contributed by the largest 29% share to the total, while excise and personal income tax accounted for 12% and 10% share, respectively. These taxes also grew steadily over the 10-month period, with profit tax recording a nearly 20% increase on an annual basis. The 26% decline in the amounts collected from small businesses can be attributed to the 50% reduction of the levy since the beginning of the year. This drop has been matched by a rise in the profit tax collections, as a result of the better enforcement of the rules for small businesses. It became harder for companies to register as small businesses in order to evade paying the corporate tax. The government also reduced the 23% rate charged on the corporate profit to 20% since January. Finally, the considerable 60% surge in the amount of insurance contributions paid to the state budget should also be mentioned. The government collected a total of ALL 31bn in the ten months of the year. The outstanding performance is the result of the various fiscal stimuli applied this year by the government with the purpose of reducing the shadow economy. Tax revenues, ALL mn Oct % y/y Jan-Oct % y/y Total Tax Revenue (collected) 7,444 6.7 65,420 10.4 From which: - - - - VAT (gross) 2,604 15.0 19,752 9.3 - VAT (net) 2,474 12.8 18,548 11.2 - VAT (currently reimbursed) 130 80.9 1,204 -13.7 Excise Tax 794 0.2 7,484 15.3 Profit Tax 1,967 5.7 18,567 19.6 Personal Income Tax 660 11.9 6,565 16.1 Small Business Tax 397 -33.5 2,292 -26.3 Land Tax - - - - Building Tax - - - - National Taxes (fees) 657 4.2 6,591 -9.1 Road Circulation Tax 237 37.9 2,990 5.0 Solidarity Tax (debtors 31.12.02) 2 1769.0 7 89.2 Gambling & Casinos 121 90.2 1,124 304.4 Others 1 50.3 16 9.7 Administrative Fines 3 53.2 32 289.6 Total Tax Revenue (net) 7,314 5.9 64,215 11.0 Insurance Contributions 3,280 6.1 30,933 59.9 Source: General Taxation Directorate