Tax revenues and their comparison with the Budget

In 2021, 1,277 million more were collected than expected in the 2021 Budget ( Table 1.7 ). This positive deviation was a consequence of better performance in all major figures, with the exception of Special Taxes. The higher collection is more notable because it occurred in an adverse context for three reasons: The forecast was made under higher spending hypotheses than those that were finally given (the forecast for national final consumption spending in the PGE-2021 was higher than the figure currently estimated); there was lower income due to regulatory changes (some measures did not come into force); and measures were arbitrated to reduce the cost of electricity (the reduction in the rate of VAT and the Special Tax on Electricity and the elimination of one quarter of the Tax on the Value of Electrical Energy Production) that were not contemplated at the time. take the PGE-2021.

In personal income tax, the deviation was positive in the amount of 350 million, 0.4% of the budgeted collection. The improvement was mainly concentrated in income from withholdings from work and economic activities and from capital gains in investment funds. Part of these positive deviations were offset by lower income in the annual declaration, and in withholdings on capital and leases.

In the Corporate Tax, revenues were much higher than those anticipated in the Budgets. The deviation was 4,907 million (22.6% of the expected collection). The good progress of installment payments, in addition to a couple of extraordinary operations, and the surprise in withholdings for investment fund profits justified the higher income.

In VAT, the positive deviation is estimated at 279 million, which means a gap of 0.4% with respect to the revenues expected in the PGE-21. The deviation is positive despite the unforeseen reduction in VAT on electricity, which negatively affected the collection in recent months.

Collection from Special Taxes was below budget by 2,080 million, 9.5% less than expected. A weaker consumption behavior than contemplated in the macroeconomic scenario foreseen at the time of preparation of the budgets is the main reason for the error, to which must be added the reduction in the rate in the Electricity Tax approved in September 2021 .

The largest negative deviation (-2,666 million) was located in the Other indirect taxes in which the new figures were included, both those that came into force and those that were planned to be approved and finally did not come into operation. The first are the Tax on Financial Transactions and the Tax on Certain Digital Services which, between them, collected 1,356 million less than expected (some reflections on this are made in Informative Note 3 and Informative Note 4). The second are the Tax on Single-Use Plastics and the Tax on Waste that did not come into force, but were accounted for in the PGE-21 with an amount of 1,341 million.