The state will collect €233 million less in tax and levy revenues next year in comparison to projections included in the state budget draft for 2013, according to an updated forecast by the Finance Ministry on Thursday, September 27.
"The drop in expected tax and levy revenues in comparison to [the estimate made in] July has been caused, first and foremost, by a review of the macroeconomic forecast, a fall in the collection of corporate tax for 2011 and moderately lower VAT collection," the ministry's Financial Policy Institute (IFP) wrote, as quoted by the TASR newswire. Consequently, the ministry has cut its estimate for tax and levy collection for 2012 and 2013 by another 0.2 and 0.3 percent of GDP, respectively.
After measures included in the Government-sponsored consolidation package are taken into consideration, estimated overall revenues from taxes and levies went up by €139 million, or 0.2 percent of GDP, this year in comparison to a forecast made in July, and by €978 million, or by 1.3 percent of GDP in 2013. According to Finance Minister Peter Kažimír, no additional proposal for tax rises will be drawn up. "In dealing with all the problems, we'll have to address expenditures and non-tax revenues. We'll also have to adopt austerity measures within the government's priorities," he said. Local municipalities will have to chip in to the consolidation drive as well, he said, adding that town and city mayors and regional governors have been instructed to act in line with developments in their revenues. A raft of consolidation measures is set for discussion by the government today, Friday, September 28.
Compiled by Zuzana Vilikovská from press reports
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