In January, the Estonian Tax and Customs Board received €1.04 billion in taxes, an increase of 10.9 percent on year. According to the Estonian Ministry of Finance, eight percent of the state budget for the year has been fulfilled.
VAT payments continued to increase this January at a similar pace to that seen in recent months (6.4 percent). However, January also saw rapid price increases, with the consumer price index up 18.6 percent.
According to the Estonian Ministry of Finance, the single-digit rise in VAT receipts points to a fall in real consumption. That is, fewer goods and services are being bought at constant prices than at the same point last year.
The fall in retail trade on year was, for instance, seven percent. In addition, the drop in VAT payments on imports decreased to 40 percent in January, mainly as a result of the reduction in goods imported from Russia and Belarus due to sanctions.
At the same time, business investment growth accelerated in January. According to Statistics Estonia, corporate profits rose by 33 percent last year, boosting this year's income tax receipts.
Wage and salary growth both increased on year, while the number of jobs fell in some sectors.
Excise duty payments were down 6.6 percent on year to January and fuel excise duty payments dropped by 17.5 percent, mainly as a result of lower declarations from the purchase of diesel and natural gas.
Growth in the wage bill rose to 12.1 percent on year, with increases in both the average wage growth and job growth.
The accommodation and food service sectors led the way in January when it came to the fastest wage growth (24.7 percent). However, in other sectors, the number of jobs were down on year.
The sector, which saw the largest decline was manufacturing, where there were more than 2,300 fewer jobs. The wood and furniture sectors were hit hardest. The transport and storage sector also saw a decrease of almost 700 jobs.
At the end of January, over 10,000 Ukrainian citizens receiving temporary protection status in Estonia had already found work.
Social tax payments increased by 11 percent on year. An amendment to Social Tax Act came into force in April 2022, reducing the rate of social tax from 33 percent to 20 percent in certain cases, which decreased the overall amount of social tax paid by the state by €5 million per month.
Personal income tax receipts (the share of the state budget and local governments in total) increased by 13.4 percent in January compared to a year before, including a 10.3 percent increase in the share of local government's income tax.
Corporate income tax receipts much higher
In January, receipts from corporate income tax amounted to €95.3 million, an increase of 45.8 percent on year
State-owned companies did not distribute profits in December and therefore received more than €7 million less in income tax this January than a year earlier. The overall increase therefore, was due to the private sector, with the main contribution coming from the 20 percent standard rate of income tax, which rose by €24 million.
Editor: Michael Cole