Tax Administration sees significant revenue growth in 2024

From January 1 to December 27, 2024, the Tax Administration (PU) collected €1.59 billion in gross revenue, marking an increase of €206.4 million or 15% compared to the same period last year. The revenue collection exceeded the plan by €65.9 million or 4.3%, according to the Tax Administration.

Value added tax (VAT) payments totaled €478.5 million, an increase of €79 million or 19.8% compared to the previous year. Corporate income tax collection amounted to €212.7 million, surpassing last year’s by €61.3 million or 40.5%. Social security contributions reached €580 million, up by €23.6 million or 4.23%. The higher revenue collection across all tax categories is attributed to improved fiscal discipline, both by encouraging voluntary compliance with tax laws and applying measures for forced collection and sanctioning illegal business activities. Increased inspections by tax authorities, particularly during the summer tourist season, also contributed to this growth, according to the Tax Administration.

Looking ahead to 2025, the Tax Administration plans to continue its efforts to further increase tax collection across all categories. The positive effects of the Fiscal Strategy and related legislative changes, such as the Law on the Waiver of Interest on Due Tax Liabilities, are also expected to help boost revenues.

“The largest growth is expected in corporate income tax and, due to rising wages and consumption, VAT collection,” the Tax Administration stated.

State-owned enterprises owe €61.7 million

As of November 30, the total debt of state-owned enterprises stands at €61.7 million, with municipalities owing €25.7 million, local companies owned by municipalities €33.6 million, and public institutions owned by municipalities €5.46 million, according to the Tax Administration.

Regarding the informal economy, the Tax Administration emphasized the importance of reducing it as a key factor for improving fiscal discipline and increasing tax revenues.