State expects tax shortfall of hundreds of millions over next few years

The state will collect less taxes this year than original expected.

The Institute for Financial Policy (IFP), running under the auspices of the Finance Ministry, curtailed its June prediction with the expectation that the state will lose €66 million in taxes this year. Predicted shortfalls for the following years are even greater, with a loss of €615 million next year, €709 million in 2021 and €774 million in 2022, the TASR newswire reported.

The IFP says that the reason for this is weaker economic output in the form of lower local consumption and the situation on the labour market, but also the implementation of a package of coalition measures.