Income, VAT and property taxes boost the budget

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Final data on the execution of the budget for the first seven months of the year which were published on Thursday confirmed the existence of excess tax receipts, even if, at 4.8 billion euros, the additional receipts are lower to the estimate of 5.1 billion euros based on provisional figures.

The good news was overshadowed by the fresh rise in the price of natural gas above 300 megawatt hours, which further restricts the so-called “fiscal space” on which the government is pinning its hopes for the additional subsidies that Prime Minister Kyriakos Mitsotakis waits. to be announced on September 10 in his opening speech at the Thessaloniki International Fair.

The primary budget deficit, which excludes debt service payments, for the period January-July amounts to almost 1.1 billion euros, instead of the more than 5.8 billion euros expected during the budget debate at the end of last year.

Net income increased by €4.8 billion, partly due to the contribution of €644 million from the European Union’s agreement on net financial assets (ANFA), which sets the rules and limits on the holding of financial assets linked to national missions by euro zone members’ central banks. The amount had not been budgeted.

Tax receipts amounted to 30.1 billion euros, up by 4.2 billion euros, or 16.3%. Three taxes are mainly responsible for this: ENFIA property tax (additional €1.2 billion), value added tax (€1.1 billion) and income tax (€1 billion). ). Among these, the first three installments of property tax were paid earlier than expected (from May to July instead of September to November). Its positive impact on turnover will therefore be temporary.

Of all the taxes, only the Special Consumption Tax yielded less than expected; the difference is 192 million euros.

The new rise in the price of natural gas has sounded the alarm bells at the Ministry of Finance. At these levels, the planned fiscal space of €2 billion until the end of the year will be entirely taken up by electricity price supports.

Ministry officials hope that this margin will be higher based on new estimates of higher economic growth that will generate more revenue, as well as the hope that energy consumption will decline when the peak tourist season ends. .

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