Monthly Tax Revenue Reports
The Monthly Tax Revenue Report (IMRT) shows the level and monthly evolution of tax revenues managed by the Tax Agency on behalf of the State. and the Local Authorities (CC. LL). of the Common Fiscal Regime Territory.
The tax revenues of IMRT are presented in cash and liquid terms, that is, as the difference between gross income and refunds made.
Total Tax Revenue February 2024
Total Tax Revenue reached €27 billion in February, 5.9% above the same month in 2023 as the result of a 6.3% gross receipts rise and a 10.4% jump in the amount of refunds paid (some of them were extraordinary).
Collection enlarged by 6.2% in the two first months of the year (5.3% the gross receipts and 1.1% the refunds paid). Tax revenue scaled by 6.7% in homogeneous terms.
February is one of the months with highest tax gathering. In this period, leaving aside the usual monthly self-assessments, VAT fourth quarter, PIT payments on account and taxes on alcohol are submitted. The fourth quarter of the Tax on the Value of Electric Energy Production, which was usually cashed in February, was not submitted (revenue from this tax will begin to enter in the next due date).
In the last report was highlighted that data, matching with 2023 accruals, dragged on the features seen in the last year. Yet, info from 2023 last quarter is mixed in February with the first accruals from 2024. The outcome was the recovery of momentum in some items that had shown a weak performance in January as well as a better evolution of the receipts from the last quarter of 2023, compared with that seen in previous quarters (quarterly self-assessments). Excepting Electricity Excise Tax, the rest of items are not yet positively affected by the gradual ending of the measures passed to hold off gas and electricity prices. Conversely, the net impact from the law changes in force is still pulling down tax revenue overall growth (without the measures deployed, tax revenue would be growing up by 9.1%).
Total Tax Revenue December 2023
Total Net Tax Revenue reached the level of €272 billion in 2023, 6.4% above the prior year. The growth was slightly higher in homogeneous terms: 6.5%.
Collection increase was driven by the expansion of the tax bases, particularly those income-related, while the tax rate cuts in Personal Income Tax and VAT burdened the total outcome. Main tax bases went up by 7.6%. Incomes jumped by 10.6%, with strong paces in every item, especially the corporate profit. Spending followed a smoother path (3.6%) due chiefly to energy prices drop, which shrank the value of consumptions subject to Excise Taxes. Yet, Spending subject to VAT advanced by 7.1% in the year overall. This tax bases evolution led to a 10.1% direct taxes growth, which explains 5.7 points out of the 6.4% total increase. Tax revenue linked to spending fared more moderately (indirect taxes and fees inched up by 1.7% altogether) mainly because of VAT tax rates cut on energy and groceries. Law and management changes as a whole, with effects in 2023, detracted €3,342 million to tax revenue. This means that, without them, collection would have gone up by 7.8%, pace alike to that recorded by the tax bases.
Next release: April 29th (March report)