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 March 2024
Total Tax Revenue has come in at €14.7 billion in March, 12% above the figure recorded a year before. Gross receipts jumped by 7.9%, while the amount of refunds paid dropped by 9.7%.
Collection in March is mostly related to monthly self-assessments from payroll/capital withholdings (February accruals), VAT (mainly accruals from January) and Excise Taxes.
Tax Revenue expanded by 7.5% in the first quarter (5.9% the gross receipts and -1.1% the refunds paid). Tax revenue inched also up by 7.5% in homogeneous terms in the same period (6.7% up to February).
Collection growth in the first quarter was chiefly down to the enhancing performance in payroll withholdings and capital withholdings. The reasons behind the gain in the former were the favourable labour market evolution and the rises in salaries, pensions and the effective tax rates. In the second case the drivers behind were the boost from the bank accounts’ interests as well as the meaningful augment in the dividends pay-out. Both factors explain around 5 percentage points within the total revenue increase rate. The rest of the increment comes from the bettering in gross VAT performance, helped since March by the tax rates rise on energy (from 5% to 10%; the recent additional increase to 21% will not be noticed until May), and the higher figures recorded in Excise Taxes, though in these last around half of the total advance was due to the measures deployed (tax rate rise in Electricity Excise Tax and the impact in January of the Tax on non-reusable Plastic Packaging, which started to be collected in February 2023). Despite these two positive effects from changes in the tax rates the overall impact from law changes kept on being negative, detracting nearly €800 million to tax revenue (1.4 percentage points out of the total growth).
Next release: May 31st (April report)