High collection in taxescoupled with increased revenue from outstanding debts led to the expansion budget revenues during the previous year. This fact allowed the government to open a basket of support measures for households and pensioners. According to data from AADEthe collection rate reached 83.30% in 2022, slightly improved compared to the previous year and increased by 2.2 percentage points compared to 2019.

AADE statistics show that businesses are more responsive to their tax liabilities than individuals, who, as the data show, find it difficult to repay the taxes they are responsible for and pay off debts of 24 or 48 installments. .

But what taxes do households and businesses pay first? Data processing showed that the highest rates of late payments were recorded for corporate income tax and VAT, followed by ENFIA and finally personal income tax.

In particular, in 2022, timely VAT payments reached 85.36% of the total amount payable. In particular, out of 14.050 billion euros of VAT due, the debtors paid the amount of 11.99 billion euros on time. Corporate income tax amounted to 89.30% of the total tax. In particular, the amount that enterprises had to pay amounted to 582.14 million euros, and the amount of payments amounted to 519.84 million euros. In fact, businesses have nearly paid their tax due since the end of November 2022.

As for the personal income tax, the amounts here are significantly lower compared to the previous two categories. The collection rate drops to 74.69%, with households paying 2.573 billion euros in taxes on time, while their dues for 2022 are 3.446 billion euros.

More than 85% of VAT and income tax were paid on time.

The consequence for business is also that the tax office can determine at any time who pays on time and who does not. Those who are late are candidates for inspection, and the fines are hefty. At the same time, the tax authorities are delaying the return of VAT to non-payers in cases of insolvency and are conducting large-scale inspections.

These reasons, combined with other parameters set by European programs and subsidies (in order for a company to participate in the Community program or receive, for example, in previous years, a refundable advance, it had to pay off its obligations on time) force most enterprises to pay on time.

ENFIA’s timely payments reached 77.72%, higher than in previous years. This development is associated with a significant decline in ENFIA for both households and businesses.

At the same time, applications have led to an increase in revenue in recent years. And this is because taxpayers are now immediately informed of their obligations, and if the due date has passed, they receive messages to pay off their debts. It is noted that in 2021, the percentage of timely payments of ENFIA amounted to 73.94%.

The Ministry of Finance reports that the contribution of new technologies over the past two years has significantly increased government revenues while improving tax collection. From 2019 to date, the growth rate of NPLs has also been limited.