Tax revenue up 16.3 percent in Q1
The Tax and Customs Board had taken in €2.6 billion in taxes by the end of the first quarter, with March revenue coming to €825.6 million.
Tax revenue grew for the third consecutive month and made up 21.2 percent of the annual forecast. Consumption taxes yielded the biggest share in growth of revenue.
The salary fund that affects labor tax receipt grew by 13.4 percent on year, mainly based on growth of average salary (8.4 percent). The number of jobs grew by 4.6 percent. The first quarter brought 10,300 more jobs than were registered in 2019. The wage fund grew fastest in accommodation and catering (28.8 percent).
Bonuses saw social tax receipt grow by 13.2 percent year-over-year in March, with quarterly growth at 12 percent and 24.3 percent of projected revenue in.
Personal income tax (state budget share) receipt was affected by returns and II pillar pension withdrawals. The board returned approximately €195 million in income tax in Q1, up €10 million from last year. Second pension pillar leavers paid €22 million in income tax. The local government portion of personal income tax grew by 11.9 percent.
VAT receipt followed high economic activity and double-figure inflation, lent speed by the war in Ukraine. VAT receipt for the first three months (€723 million) exceeds the 2021 level by 19.6 percent or €119 million. Total turnover of companies accelerated by 28.8 percent. Turnovers grew the most in commerce. Humanitarian aid purchased in Estonia was used to support people in Ukraine. VAT arrears remained unchanged at €164 million despite the recent crisis.
Excise duty receipt grew by 6.7 percent on year, with the duty on alcohol the fastest growing component (18.8 percent). The lifting of entertainment establishment's Covid rules contributed.
Fuel excise duty receipt grew by 4.8 percent in Q1 and 15.8 percent in March, this despite rapid price advance. The retail price of gasoline went up by 38.3 percent and sales by 13.9 percent on year. Diesel price advance was a staggering 53.2 percent, with sales up 9.7 percent.
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Editor: Marcus Turovski
Source: Ministry of Finance