Figures released by NSO today show that total tax revenue increased by €167.1 million in 2013 and by a further €260.6 million in 2014. This increase was the result of the strong economic performance recorded since 2013 which augmented wages and earnings of households as well as increased profits by firms.
These figures corroborate other indicators, among them the high level of financial and economic optimism, which regularly sustain the view that the robust economic growth registered is being transmitted to families and businesses. Indeed, private consumption also increased markedly during the period resulting in an increase in revenue from VAT by over €100 million in 2013 and 2014.
PRESS RELEASE ISSUED BY THE MINISTRY FOR FINANCE
Revenue from personal income tax increased by €50.3 million in 2013 and by a further €37.5 million in 2014. It is noteworthy that this increase in personal income tax revenue was attained despite the lowering of income tax rates which this Government decreased from 35% to 32% in 2013 and to 29% in 2014.
The dynamic performance in the labour market is also confirmed by an increase of €54 million, over two years, in social contributions reflecting both an increased number of participations in the labour market as well as higher wages.
The increase in tax revenue to GDP ratio also reflected the various budget measures which this Government implemented to enhance efficiency in revenue collection and reduce tax evasion including the investment registration scheme and the 15 per cent rent scheme.
Minister for Finance, Edward Scicluna, commented: ‘These data highlight three main points. First, that economic growth is being conveyed to our families in terms of higher employment and wages. Secondly, is that we are being successful in our policy to broaden the tax base. The figures also show that this Government’s efforts to combat evasion are bearing results.’
– Tuesday, 3rd November, 2015