VAT collection remains stable and does not increase compared to last year due to the rate reductions implemented by the Government in food and energy, mainly. In the first ten months of the year, homogeneous VAT revenues increased by a negligible 0.1%, to just over 76 billion euros. According to the Tax Agency, which published the October statistics yesterday, “the regulatory and management changes subtract more than 2,900 million from the collection, so that, without them, income would be growing by 4.8%.”
The “loss” of collection in the January-October period due to the reduction in VAT on food was 1,423 million while due to the reduction in energy rates it was another 734 million. In the case of personal income tax, the tax cuts by the central government and some communities reduced income by more than 3,000 million, although the increase in salaries led to a new record collection in that tax of more than 96,000 million, almost 10%. more than in the same period of the previous year.
Global tax revenues in homogeneous terms in the first 10 months of the year rose to almost 224,000 million, 5.8% more than in the same period of 2022.
This increase in collection allowed the deficit of public administrations – except local corporations – to total 22,448 million euros until September, a figure that is 1% lower than that of the same period of the previous year and is equivalent to 1.54% of the GDP.
According to budget execution data released this Thursday by the Ministry of Finance and Public Function, the deficit in terms of GDP fell by 0.14 points of GDP from the 1.68% in which it stood in the equivalent period last year. and excluding financial aid. If this is included, the deficit would be 1.56% of GDP.
The Treasury also reported that the State deficit stood at 1.37% of GDP until October, in this case compared to the 1.58% ratio in the same period of the previous year. The total figure fell 5.7% year-on-year, to 20,053 million.
