Tax take rises nearly 15 percent in April 2021 compared with previous year
Tax take for April stood at €670.8 million, a 14.9 percent rise on year, the Tax and Customs Board (MTA) says, with growth mainly fueled by the low starting point, given that April 2020 was the first full month to follow the arrival of the coronavirus pandemic.
VAT receipts January to April 2021 came to €804 million, 19 percent more than in the same period in 2020, though even 5.9 percent higher than in the same period in the pre-pandemic year of 2019.
This was in turn the result of total enterprise turnover growth accelerating to 27 percent in April, the result of strong demand. Of the activities, trade, i.e. retail and wholesale trade and sale of motor vehicles, contributed the most to the increase in VAT payments.
Excise duties payments increased by 13.2 percent on year in April, driven by alcohol excise duties, which rose by 3.1 percent January to April 2021. At the same time, hard liquor tax receipts fell 4.9 percent January to April, compared with the same period in 2020, partly the result of coronavirus restrictions meaning bars, restaurants etc. have been largely closed through to May.
As of the end of May, €203 million in tax rebates has been paid, a rise on year of €18 million, primarily due to a higher tax-free income threshold this year.
Corporate income tax receipts came to €40.9 million in April, an increase of 18.2 percent, or €6.3 million, compared with April 2020, mainly due to income tax paid on private distributed profits.
Corporate income tax receipts have increased by 1.6 percent compared with last year.
Income tax on special benefits transformed to a small increase, following a year-long decline.
April 2021 quick fiscal facts:
- Fuel excise duty receipts rose by 16.9 percent, and both petrol and diesel contributed to the growth, albeit from the low baseline due to the emergency situation declared in April 2020.
- Sales of motor fuels rose by 24.1 percent compared with April 2020, and by 12.7 percent in the first four months of 2021, compared with the same period in 2020, primarily driven by diesel sales.
- Average wage growth accelerated to 8.9 per cent.
- Social tax receipts increased by 11.7 percent, again mainly due to the low 2020 reference point.
- Wage bill grew to 7.3 percent, mainly driven by health care and information and communication.
- Beer excise take rose by 2.9 percent in the first four months of 2021, compared with the first four months of 2020.
- In the first four months of the year, 32 percent of the state budget has been implemented.
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Editor: Andrew Whyte