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STATISTICS

TAX REVENUES: 2019

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Statistiche-NSO-2Total tax revenue in 2019 went up by €261.9 million over the previous year and stood at €4,291.7 million. Tax revenue can be broadly classified under three main headings: indirect taxes, direct taxes and social security contributions. All three categories of tax revenue registered an increase over 2018. In contrast to 2018, the largest increase was recorded in direct taxes, which rose by €182.0 million, for a total of €1,853.1 million, or 43.2 per cent of total tax revenue. The two key components of direct taxes, namely Personal and Corporate Income Tax, registered an increase of €90.3 million and €79.7 million, respectively.

Concurrently, indirect taxes increased by €44.7 million, amounting to €1,638.5 million, or 38.2 per cent of total tax revenue. This increase was mainly triggered by higher Other taxes on production (€14.8 million). Additionally, other increases were registered in Value Added Tax (VAT) receipts (€14.7 million) and Taxes on products (€10.6 million). Social contributions represented 18.6 per cent of total tax revenue in 2019, standing at €800.1 million. This reflects an increase of €35.3 million over 2018 (Table 1).

The overall tax burden denotes the total amount of taxes and social contributions, expressed as a percentage of GDP. In 2019, the tax burden for Malta was 32.1 per cent of GDP, which reflects a decrease of 0.2 percentage points when compared to the total tax burden recorded in 2018 (32.3 per cent of GDP) (Table 2). Since 2002, the total tax burden has been consistently above 30 per cent of GDP, with the lowest rate recorded in 2015 (30.5 per cent of GDP), while the average tax burden for the 1995 to 2019 period stands at 30.9 per cent (Table 2).

The contribution of Current taxes on income and wealth towards tax revenues increased substantially, from 8.1 per cent of GDP in 1995 to 13.6 per cent in 2019. Consequently, the share of Current taxes on income and wealth surpassed the share of Taxes on production and imports for the first time in 2013 by a margin of 0.5 percentage points. This margin increased to 1.4 percentage points in 2019, the highest since 2013 (Chart 1).

By the end of last year, direct taxes (which also include Capital taxes) amounted to 13.8 per cent of GDP, compared to the share of indirect taxes which stood at 12.2 per cent. Meanwhile, the share of Social contributions stood at 6.0 per cent of GDP, remaining relatively stable over the years (Table 2).

Income Tax receipts by ESA 2010 institutional sector

In 2019, the household sector accounted for more than half of the income tax received by General Government, with a share of 56.6 per cent, equivalent to €998.0 million, while the contributions of the Financial and NonFinancial corporations were 22.9 per cent and 20.1 per cent, respectively. On aggregate, Non-profit Institutions serving Households, General Government and Rest of the World totalled 0.4 per cent. In absolute terms, the €171.0 million increase in income tax receipts over 2018 were mainly collected from Households (€90.6 million) and Financial Corporations (€81.4 million). Conversely, income tax receipts from Non-Financial Corporations decreased by €1.1 million (Table 4).

Environmental taxes

In 2019, Malta’s total environmental taxes increased by €23.9 million, amounting to €345.7 million. This figure represents 8.1 per cent of the total revenue derived from all taxes and social contributions, and 2.6 per cent of GDP. Energy taxes (which include taxes on transport fuels) constituted the largest share of environmental taxes, accounting for 51.1 per cent, followed by transport taxes (39.5 per cent) and pollution taxes (9.4 per cent). All environmental taxes registered an increase over the preceding year (Table 5)

 

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