Tax burden in Portugal reaches record 36.4% of GDP


Share post:

Last year, revenues from taxes and mandatory contributions in Portugal increased by 14.9% in nominal terms to reach 87.1 billion euros, pushing the tax burden to a record 36.4% of GDP.

In 2022, the tax burden in Portugal reached 36.4% of Gross Domestic Product (GDP), a record compared to 35.3% in the previous year, the National Statistics Institute (INE) announced this Thursday.

The value of taxes in Portugal increased by 14.9% in nominal terms, reaching 87.1 billion euros – the tax burden reflects the total of taxes and mandatory contributions collected by the State.

It should be recalled that in 2021, the tax burden had returned to an upward trajectory, “more than offsetting” the nominal decline of the previous year, with general government tax revenue standing at 75.6 billion euros, which was the highest value of the series so far.

According to INE, considering 2021, the last year with available information for the European Union (EU27) and excluding the taxes received by the EU institutions, Portugal continues to present a tax burden (35.1%) lower than the EU average (40.5%).

Revenues from direct taxes increased by 24.1%, “mainly reflecting the evolution of revenues from personal income tax (IRS), which grew by 12.8%. In turn, actual social contributions “grew by 10.2%, reflecting in particular the growth in paid employment, wage updates and the increase in the minimum wage.

As for the amount generated by corporate income tax (IRC), there was an increase of 59.6%, “benefiting from the more favorable behavior of the Portuguese economy in 2022.

Indirect taxes, meanwhile, grew by 12.2%, with revenue from Value Added Tax (VAT) – the largest generator of cash for the public coffers – expanding by 18.1%, (after a 13.7% increase in 2021). The highlight is the growth in revenue from the municipal property transfer tax, which will increase by 26.3%.

INE also reports increases in revenues from tobacco tax (8.4%), stamp duty (6.6%) and vehicle tax (5.3%).

On the other hand, the tax on oil and energy products was the only one of the main taxes with a decrease in revenue (-21.3%) as a result of “the measures implemented by the government to mitigate the increase in fuel prices.


Related articles

Carris workers with 90% adherence to partial strike

Carris workers have joined the partial strike, called this week to demand pay rises and a 35-hour working...

External surplus of the Portuguese economy rises 5.6 times until May to 2,683 ME

The Portuguese economy posted an external surplus of 2.683 billion euros up to May, 5.6 times the surplus...

Films by Cláudia Varejão and Luciana Fina join the Venice Film Festival

The films "Kora", by Cláudia Varejão, and "Sempre", by Luciana Fina, will be shown in the "Days of...

Rapper 21 Savage cancels performance at SBSR festival due to illness

American rapper 21 Savage has cancelled his performance scheduled for tonight at the SBSR festival, "due to illness",...