Tax collection €600m short of state budget

Tax collection this year will be €600m below the level projected in the approved state budget, according to the Finance Ministry’s latest forecast. Last year, tax revenues undershot the budget by €1.8bn. VAT and corporate income tax receipts are expected to fall short of plan as new and higher taxes dampen economic growth and a reduced anti-corruption drive weakens collection efficiency. Although the nominal VAT rate is 23% (with multiple exceptions), the effective rate has fallen below 16%, down from over 18% in 4Q22. The state expects to collect €508m from the financial transaction tax this year, compared with the original projection of €744m for 2026 when the tax was introduced last April.

(sme.sk, dennikN.sk)