BRATISLAVA, January 3, (WEBNOVINY) — Within last year’s tax revenue, the Treasury reported better collection of mainly value-added tax (VAT) and excise tax on tobacco products compared with the stipulated budget. Tax revenue from VAT exceeded the budgeted level, according to data of the Financial Policy Institute (IFP) at the Finance Ministry, by 85 million euros or 1.8 percent and collection of excise tax on tobacco products exceeded the budget by nearly 5 million euros or 0.8 percent. “On the contrary, non-fulfillment of the budgeted level was reported mainly by the excise duty on mineral oils (revenue worse by 73.4 million euros) and corporate income tax (revenue worse by 52.5 million euros),” IFP said in the released commentary to the results of the state budget for 2011.
The overall revenue from excise duties reached 96 percent of the budgeted level in 2011. The budget was exceeded by collected excise duties on beer, wine, tobacco products and electric energy. The largest shortfall compared with the budget was reported by the excise duty on mineral oils, namely 73.4 million euros. According to IFP, this excise tax reflects the trend of gradual replacement of vehicles with petrol engines by vehicles with diesel engines. The state also posted a shortfall exceeding 10 million euros in case of the excise tax on spirits which is also caused by tax evasion, the institute thinks. The collection of excise taxes grew in 2011 by 2.9 percent in a year-on-year comparison.
In 2011 the revenue from corporate income tax reached 96.9 percent of the budgeted level, however it grew 28.9 percent y/y. “The non-fulfillment of the budgeted level of the tax could also have been influenced by the deadline for paying advance payments of the tax for December 2011 which was set on January 2, 2012,” the IFP stated.
The Treasury also reported lower-than-expected collection in case of taxes on emission quotas, namely only 42.4 percent of the budgeted level. “The reason behind the non-fulfillment of the tax on emission quotas is the fact that companies did not pay the tax on emissions which they saved thanks to investments in technologies (this factor was not quantified when the budget was compiled), further a decline in the real price of allowances in the course of 2011 and likelihood that some companies simply did not pay this tax,” IFP stated.
Tax revenue of the state budget on a cash basis reached 8.7 billion euros in 2011 which is by 86.5 million euros less compared with the budgeted level. Actual tax revenue thus represent 99-percent fulfillment of the state budget.
SITA
