Substantial increase in central government tax revenues

16/05/2006 14:00

Central government tax revenues over 2005 amounted to 116 billion euro, an increase by more than 9 percent compared to 2004. The increase is mainly due to the recent economic revival and several incidental payments into the central government coffers. For the first time since 2000, central government has a small surplus.

Central government tax revenues

Sharp increase income tax revenues

Revenues from income tax and tax on profits totalled 55 billion euro last year, 15 percent more than in 2004. This huge increase follows a very lean period covering two years. In 2003, government receipts from income and profit taxes fell by 5 percent. In 2004, there was a scant increase of less than a half percent.

Income tax revenues

Economic revival generates more corporate tax

Improved operating results in the private sector in 2005 accounted for higher corporate and dividend tax revenues, exceeding the estimated revenues by approximately 4 billion euro. There was a one-time income tax receipt to the amount of nearly 3 billion euro from statutory social insurers to settle a dispute about income tax and social contributions not received in previous years.

Taxes on production

Tax revenues related to the production process, such as excise duties imposed on consumer articles and sales tax totalled 60 billion euro last year, a 5 percent increase on 2004. Revenues from excise duties on tobacco, petrol, beer and spirits were marginally lower in 2005 than in 2004. Sales tax revenues received by the government totalled 36 billion euro, an increase by more than 3 percent on 2004. Due to higher electricity and gas prices, revenues from environmental taxes were more than a quarter higher than in 2004.

Revenues taxes on production

Laurens Cazander