In 2022, indirect taxes contributed EUR 33.2 billion to the state budget, compared to EUR 28.1 billion in 2021. That is, in just one year, revenues increased by EUR 5 billion, resulting in the ratio of indirect taxes in terms of overall the volume of tax revenues will exceed 60%, which is the first time in at least 20 years.

Explosion in prices due to inflationincreased consumption through developmentbut also familiarization of consumers with electronic payments – which also contributed to the reduction of value added tax evasion – contributed to this collection record, but also opened up a debate about what should be done with indirect tax calculation factors in the coming years.

In particular, the base VAT rate is among the top three in Europe, as only Nordic countries with different tax philosophies and welfare states apply higher rates (Denmark, Norway, Sweden).

The price explosion due to inflation and the increase in consumption due to growth brought 33.2 billion euros to the state treasury.

The two main parties essentially took positions on the issue. The current government argues that cutting indirect taxes at this stage will lead to a significant expansion of fiscal space without contributing to the fight to de-escalate prices. It has been calculated that a horizontal measure such as a VAT cut – horizontal means that it will benefit both the rich and the poor, permanent residents and tourists – it is very likely that it will never reach the shelf and the final price. , but it will be… lost in the intermediate stages from the manufacturer to the wholesaler, retailer and end consumer.

The official opposition, on the other hand, has from time to time advocated targeted reductions in VAT (especially on food), as well as the application of lower excises on energy, so that by lowering prices to this extent, a deflationary wave would be created in all products by reducing energy costs.

As the share of indirect taxes in total tax revenue rises – preliminary data for 2023 suggest another record will be broken as consumption taxes and VAT collections rise faster than total tax revenue – the more difficult it will be to decide to cut rates. since you have to sacrifice a large budget space.

On the other hand, according to administrative mechanisms, in the coming years, a further increase in the number of electronic payments, the interconnection of cash registers with POS, as well as electronic control of the tax office will further increase VAT collections, which, in fact, will turn into a “tax trap” and “black “money that may not initially be subject to income tax, but is ultimately … captured at the moment of consumption.