After the public baths, a merciless “tax storm” begins, with which millions of taxpayers will face. For the month of August alone, from direct and indirect taxes, more than five (5) billion euros must enter the state coffers, while by the end of December taxes totaling 25 billion euros must be paid, not counting the fixed monthly expenses of citizens, but also the installments loan that they may have.
Depending on the course of implementation of the budget, the state collects every month several million euros above the target of excise duty (EFFK), mainly on fuel. This overperformance is due in particular to the rise in petrol and diesel prices, which, after jumping above 2.30-2.40 euros per liter last year, this year have remained stable above 1.80-1.90 euros and more in many areas have exceeded 2 euros again per liter.
On the other hand, value-added tax revenues are also constantly moving at high levels, which are expected to reach higher levels, also due to the tourist season, with estimates talking about a season that could approach 2019, but not last year. This is also the reason why VAT revenues appear slightly lower compared to last year in the country’s monthly budget.
In recent years, it has become standard practice in the Ministry of National Economy and Finance to shift the greater tax burden for households and companies to the second half of the year. This year’s ENFIA fee payment began last May. The original plan for this year’s income tax also talked about paying the first installment at the end of June. However, the continued extension of the financial staff allowed the first and second installments of income tax to be paid at the end of August.
In practice, the taxpayer after vacation expenses will face a triple tax bill. If he also has previous debts in a debt settlement, he will have to pay those installments as well. These are accumulated obligations that in many cases can amount to one salary.
The tax “nightmare” won’t stop until the end of February 2024, when even then income tax and ENFIA payments are scheduled. Therefore, over the next seven months, taxpayers will pay double or even triple installments to the state, on top of their existing obligations. In fact, at the end of November, new road tax bills are expected to be issued, which according to the law should be paid by the end of December 2023, with the total revenue for this tax being 1.2 billion. euro.
The consequence of all of the above is that taxpayers continually enter into a “circle” of debt arrangements, trying to “stretch” the payment of tax burdens as much as possible. So often, in fact, that one arrangement “rides” the next, because the tax office’s fixed arrangement, for example, allows the inclusion of up to 24 installments for ordinary debts and 48 installments for extraordinary debts.
Budget: What are the receipts per month
Depending on the budget objectives, the second half of the year receipts should move monthly, based on cumulative development, as follows:
By July it was estimated that €31.4 billion would be raised and in August an additional €5.07 billion would be added to government revenue. However, due to the extension granted to tax returns and the possibility of double installment payment at the end of August, it is estimated that at the end of the month the final “bill” will be much larger than 5 billion, making it the most “tax-heavy month” of the year!
For the remaining four months of the year, it is estimated that the revenue stream will be around €5 billion per month. In particular, in September it is expected that 5.33 billion euros will be collected, thus in the first nine months of the year government revenues will amount to 41.82 billion euros.
An additional €5.07 billion in indirect and direct taxes will be added in October, bringing revenue to €46.9 billion, while it was estimated at €4.96 billion for November.
Finally, December will be another “heavy” month for 2023, as the revenues that will have to enter the state coffers amount to 5.5 billion euros, because the tax “game” will also include the 2024 road tax.
The Finance Ministry estimates that total revenue for the year will be €57.42 billion.
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