Inflation, the State also gains: VAT revenue is growing, tax revenues + 11.7%

Inflation, the State also gains: VAT revenue is growing, tax revenues + 11.7%

Tax revenues are growing. Thanks to the VAT revenue, following the increase in consumer prices, and the positive drag on revenues from the effects of the Relaunch decree and the August decree (which in the two-year period 2020-2021 had arranged for extensions, suspensions and resumption of tax payments) , in the period January-July 2022 the revenues for the State – ascertained on the basis of the criterion of legal competence – amounted to 288.423 billion, with an increase of 11.7% compared to the same period of 2021.

Direct taxes: + 1.2%

The Ministry of Economy and Finance explained the situation. In detail, in the month of July tax revenues amounted to 45,546 million euros (+1,370 million euros, + 3.1%). In particular, direct taxes had an increase in revenue of € 311 million (+ 1.2%) and indirect taxes recorded a positive trend of € 1,059 million (+ 5.8%). In the first seven months of 2022, direct taxes increased by 13,985 million euros (+ 9.7%). The income from Irpef recorded an increase of 3,384 million euros (+ 3.0%).

Withholding taxes on employees’ income are growing

In particular, withholdings made on the income of employees in the private sector recorded an increase of 1,868 million euros (+ 3.7%) and withholdings for self-employed workers by 576 million euros (+ 8.4%) while the withholdings on income of public sector employees decreased by 205 million euros (-0.4%). Payments for self-settlement marked an increase of 440 million euros (+ 8.6%) as, as for the self-settlement of IRES, the deadlines for self-tax payments for taxpayers subject to tax reliability indexes have changed (Isa ). Significant increases in revenue were recorded for the substitute tax on income from capital and capital gains (+1,565 million euros, + 139.7%) due to the favorable trend of the asset management market in 2021 and the high return on investment.

Revenue from games: + 32.8%

The substitute tax on the asset value of pension funds also recorded an increase (+1,038 million euros, + 102.6%) attributable to the positive trend of the positions in the supplementary pension schemes at the end of 2021, compared to 2020, and to returns. As for the revenue related to games, the increase of 2,054 million euros (+ 32.8%). Revenue from tax revenue deriving from verification and control activities showed an increase of € 2,761 million (+ 64.3%) of which: € 1,831 million (+ 85.8%) came from direct taxes and 930 million euros (+ 43.1%) from indirect taxes. The comparison with the same period last year is not homogeneous as in 2021 the collection activities were suspended until 31 August 2021 (Law Decree no. 73/2021, so-called support-bis decree).

Stamp duty: + 19%

Indirect taxes increased by € 16,336 million (+ 14.3%). VAT contributed to the positive trend, with an increase in revenue of € 13,775 million (+ 18.7%), in particular the component relating to internal trade showed an increase of € 8,771 million (+13.4 %), while VAT on imports recorded an increase of 5,004 million euros (+ 62.4%). This last result is linked, in large part, to the trend in the price of oil, which resulted in growth. Among other indirect taxes, revenue from stamp duty (+793 million euros, + 19%) and registration tax (+158 million euros, + 5.0%) recorded positive trends while insurance tax had a negative change (-9 million euros, -2.2%).

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