Budget, Estonia, Financial Services, Taxation

The sum total of wages and salaries paid out by employers keeps growing at a rapid rate, although there has been a deceleration of growth, the Finance Ministry said on Wednesday. The increase in the inflow of indirect taxes was more subdued in May.

Tax inflow in the first five months of the year equals 40.4% of the sum total budgeted for the full year.

Of social tax 6.6% more than in May 2015 was received last month. The increase in the size of declared payroll was 5.5%. The number of salaried employees was declining for the ninth successive month in April and the rate of decline in April was 0.6%. On the other hand, the inflow of social tax continues to be backed up by rapid wage growth.

Data available in a breakdown by field of activity shows that the number of occupied jobs declined for the ninth successive month in April, when the number of occupied jobs became smaller by 0.8% year over year. In the last three months, the biggest reductions have been registered in mining, agriculture and energy.

The inflow of excise duties declined in May compared with May 2015, with the biggest drop – by 10.1% – reported in the alcohol excise duty. The reduction is ascribed to traders selling stocks of alcohol accumulated before the rise in the excise duty. The receipts so far was been consistent with estimates and the amounts of alcohol declared are expected to return to normal in the fall.

Of fuel excise duty 19.5% more was received in the first five months of the year than during the same period last year. Receipts in May were smaller by 4.1% than in May 2015, however. The big increase in five-month receipts can be explained primarily with the a surge in fuel excise receipts in February as a result of the accumulation of stocks prior to the hike in the excise duty, the ministry said.