Figures for Greek state revenues in the executed budget over the January-April 2017 period showed a serious shortfall in terms of VAT remittances, income taxes and all types of "sin taxes" and surcharges imposed on consumer goods.
Although the overall revenue target for revenues exceeded the four-month target, reaching 12.361 billion as opposed to the target of 12.288 billion euros, the specific result is attributed to an over- performance of the collection of direct and indirect tax arrears from previous years.
In terms of state budget net revenues, the finance ministry recorded a shortfall of 827 million euros from the target, primarily due to a major decrease in revenues funneled towards the public investment program.
Revenues targets were missed for income taxes imposed on individual taxpayers by 190 million euros, or 8.7 percent. Specifically, 1.985 billion euros were collected, as opposed to a target of 2.175 billion euros. The disappointing figure comes despite the fact that tax rates were based on a new (higher) index and a lower tax-free threshold - the latest manifestations of austerity measures.
VAT remittances from fuel products missed the target by 26 million euros (-4.1 percent), with the total reaching 611 million, as opposed to a target of 636 million euros. As in the case with income taxes, VAT rates were also raised as of Jan. 1, 2017, another effect of the 2016 "tax tsunami" imposed by the leftist Greek government.
Yet another "sin tax" that failed to meet the target for the first four months of 2017 was the surcharge on tobacco products, which fell short by 60 million euros (30.4 percent). Roughly 138 million euros were collected from taxes and surcharges imposed on tobacco products, as opposed to the target of 198 million euros. These types of phenomena have previously been ascribed to lower consumption - consumers giving up or curbing smoking, for instance, because it has become a costlier habit - or even greater transactions of bootleg tobacco products.
VAT from all types of products and services also missed the target by 143 million euros (3.4 percent), despite the highest VAT rate raised from the already "Scandinavian" 23 percent to 24 percent. The total collected over Jan-Apr 2017 was 4.109 billion euros, as opposed to the target of 4.253 billion euros.
