Tax collection continues to break historical records. In the accumulated of the first four months of the year, the income recorded by the Ministry of Finance reached 90,679 million, 5.5% more than in the same period of 2022, a record year in which more than 255,000 million. With these figures, the Government has a greater margin to approve a new anti-inflation package before a part of the measures that are in force expire, on June 30, and, in turn, to continue reducing the deficit and debt.
April was a positive month as far as tax collection is concerned. Revenues totaled 34,528 million, 10.8% more than in the same month of 2022, according to the report made public this Wednesday by the Tax Agency. Four are the figures that mainly supported the data: personal income tax, corporate tax, VAT and the new tax on plastic.
Income tax maintained the stable growth that has characterized the evolution of this figure in recent months. Personal income tax grows as a result of the positive evolution of employment and wages, so that withholdings on income from work and economic activities increase. Income from said withholdings grew by 11.2% in April, to over 12,000 million. In the accumulated of 2023 they are close to 40,000. In the private sector the rise so far this year is 10%, while in the public sector it rises to 12.3%. These incomes are affected by the reduction of personal income tax for the lowest incomes, a decision that causes an accumulated impact of 215 million and subtracts eight tenths from the growth of the rate, explains the Treasury.
Corporation tax, whose first payment is made in April, begins to be representative throughout the year. Revenues are still notable. In this way, the collection of the first installment payment increased by 24.5%, up to 8,900 million. The consolidated groups contributed 4,700 million, the large companies almost 2,800 and the SMEs were about to reach 1,300.
VAT is another figure that continues to grow at a good pace as a result of final spending. Specifically, gross VAT receipts grew by 3% in April, to exceed 10,000 million. In the accumulated of the year it exceeds 35,000 million. The Treasury observes a notable increase in household spending and in home purchases. The reduction of the tax on certain foods that came into force in January caused a negative impact of 254 million, according to the Treasury, in the accumulated figure for the year. To this measure we must add the additional reduction in the VAT rate on electricity (initially from 21 to 10% and to 5% since mid-2022), which has reduced collection by 276 million and that applied to natural gas, wood and pellets, which has reduced income by 102 million.
“There are also factors not related to the current situation that raise revenue, such as the new tax on plastic,” explains the Tax Agency. Specifically, the new figure made public coffers receive 167 million in the first four months of 2023. Revenues from this figure in April (70 million) were somewhat higher than those of previous months (54 million in March and 41 in February). by also including quarterly statements.