Accountability day: shortfall in expected tax revenue of EUR 11.4 billion
Publication date 21 May 2013
The shortfall was felt in almost all tax areas. The biggest shortfall in real terms occurred in the three largest tax regimes: payroll and personal income tax, VAT, and corporate income tax.
Revenue from payroll and personal income tax was EUR 2.9 million less than expected and was thereby the biggest shortfall. This is attributable to the fact that wage growth lagged behind expectations. The employment market also developed less than was envisioned in the Budget Memorandum.Finally, the revenue from payroll and personal income tax fell short of expectations due to self-employed individuals who are subject to personal income tax reporting lower profits.
Corporate income tax revenue had a shortfall of EUR 2.5 billion due to the profits reported in 2012 being less than forecast in the Budget Memorandum. Also the revenue (kasontvangsten) received in 2012 in respect of previous years, was less than expected.
The shortfall in VAT revenue was EUR 2.3 billion, which was mainly the result of investment in new homes being considerably less than forecast in the Budget Memorandum 2012. Consumer spending also lagged behind expectations.
The revenue from the real estate transfer tax fell short by EUR 0.5 billion, due to less sales and falling house prices for existing homes. This shortfall is in addition to the EUR 0.5 billion in lower revenue as a result of the permanent reduction in the tax rates for homes, which took effect on June 1, 2012.