Tuesday. 31.03.2020
El tiempo

Increased revenue from VAT, property, inheritance and beverage taxes

Soft drink tax revenue grew 16.9% and the pharmacy rate 4.4%.

Increased revenue from VAT, property, inheritance and beverage taxes

According to Statistics Finland, the accrual of taxes and compulsory social security contributions grew by 2.1% in 2019. These data are based on the preliminary national accounts data for 2019.

The total accrual amounted to 101.1 billion euros. The tax ratio fell from the previous year by 0.3 percentage points to 42.1%.

The tax revenue of the state totaled 49.5 billion euros. The growth from the year before amounted to 1.7%.

The tax revenue of municipalities totaled 23.2 billion euros and it rose by 3.1% from one year before.

The accruals of compulsory social security contributions paid to social security funds increased by 1.4% and totaled 28 billion euros. The proportion of taxes and statutory social security contributions in consolidated total general government income was 82.1% in 2019.

VAT revenue grew

The value added tax revenue grew by 2.4% from the previous year and was 21.9 billion euros. The revenue from other taxes paid for goods and services mainly decreased somewhat.

The revenue grew in pharmacy fee (by 4.4%) and the tax on soft drinks (16.9%). The revenue from tobacco tax and alcohol tax grew "only slightly," Statistics Finland says.

The revenue from central government's share of Oy Veikkaus Ab's profit fell by 0.9% and amounted to 1.1 billion euros.

The revenue from energy taxes decreased by 2.3% and the revenue for the year was 4.3 billion euros.

The revenue from vehicle and motorcycle tax, 886 million euros, was 11% lower than in the previous year.

The income tax paid by households grew by 2.9% and the revenue amounted to 29.4 billion euros.

Property and inheritance taxes

The revenue from taxes on property rose by 3.8% from the previous year.

In 2019, the revenue from inheritance and gift tax was 748 million euros or 8.1% more than in 2018.

The revenue from transfer tax was 857 million euros, with an increase of 1.5% from one year before.

216 million euros collected as contributions to the Single Resolution Fund from credit institutions was recorded as tax revenue for the institutions of the European Union.

The net tax ratio

The above mentioned tax ratio (42.1%) describes the ratio of taxes and compulsory social security contributions to gross domestic product (GDP).

In addition to the tax ratio, the net tax ratio must be examined, which is calculated by deducting income transfers paid by general government from taxes received by general government.

In 2019, the net tax ratio was 18.3% of gross domestic product, up by 0.2 percentage points from the previous year.

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