International Internet Magazine. Baltic States news & analytics
Tuesday, 28.03.2017, 16:58
Estonia's January tax revenue up 5.8% on year
Of social tax, growth in whose receipts has accelerated in recent months, 7.5% more than in January 2016 was received. In December the declared payroll, which in addition to wages and salaries includes board member and other contractual remuneration, expanded 6.4%. The y-o-y rate of growth in average earnings was a stable 5.7% and the number of employees grew 0.7%, the Finance Ministry said.
In the past three months the growth in job numbers has been biggest in administration and support activities and in information and communication – respectively 6.1% and 4.8%.
The payroll of the final quarter of the year grew the most also in administration and support services – 12.1%. Payouts declined in mining and agriculture.
Growth in tax inflow was held back in January by a drop in corporate income tax, of which 30.9% less was received than a year ago as a result of reductions of respectively 37% and 32% in the amount of profit distributed by state held and private companies.
Of state held companies, the state forest manager RMK and Port of Tallinn increased ther dividend payouts and Eesti Loto and Air Nvaigation Services became dividend payers, whereas Eesti Energia distributed no profit this time.
Value added tax receipts totaled 200.8 mln euros, 5.3% more than in January 2016. The growth was driven primarily by retail trade, whose nominal growth amounted to 4.7% in 2016. VAT payments increased the most in energy and the sale of motor vehicles – by respectively 24.9% and 16.4%. The increase was driven mainly by bigger energy consumption in energy, and by increased market activity in the sale of motor vehicles.
Excise duty receipts totaled 123.2 mln euros, 27.8% more than in January 2016. The inflow of excise duties is influenced significantly by the tax increases taking place in 2017 and the stocking up on goods prior to the hikes. The tobacco excise duty was hiked in January and the alcohol excise duty and the fuel excise duty, including the duty on motor fuel, in February.
The sum total of tobacco excise duty collected in January reflects the peak of accumulating of stocks ahead of the rise, with a whole month's worth of cigarettes bought additionally by consumers. Stocking up on strong alcohol started in December and continued in January. Starting from March, receipts for which month reflect the amounts sold in February, inflow of excise duties is expected to drop significantly, depending on the actual size of the stocks accumulated.