“Revenue growth was primarily driven by the execution of IRS (17.7%) and VAT (9.1%), and to a lesser extent, by CIT (42.9%), IMT (35.5%), ISP (14.1%), and the Tobacco Tax (27.4%),” the budget execution summary stated.
Concerning IRS, the evolution was mainly due to a decrease in refunds (-643.2 million euros, 31.8%) compared to the same period last year, due to adjustments in withholding tax tables.
The increase in CIT revenue was “mainly explained by the rise in self-assessment payments (73.7%) compared to May 2024.”
In terms of indirect taxes, the positive performance of net VAT revenue (890.6 million euros, 9.3%) is notable, partly motivated by the decline in refunds (-91.6 million euros, -2.5%) compared to the same period last year.
This decrease in IRS and VAT led to a 12.6% reduction in tax refunds (-765.1 million euros) compared to the same period last year.
It is also noteworthy that several factors influenced these figures, such as the effect of extending VAT payments and deferred CIT payments in February 2024. Excluding these, tax revenue shows a year-on-year growth of 12.4% (2443 million euros).
