State revenues recorded a 10% reduction in May, although gross income (before tax refunds) increased marginally, as the dramatic increase of tax refunds resulted in the collapse of net revenues.
According to reliable Finance Ministry sources, the Treasury raised approximately €4.3b in May, €50b more than May 2010. But, tax refunds amounted to €800m from €500m in May 2010. Tax refunds for the Jan-May period amount to €2.5b, while estimates for the whole year were €3.8b.
The huge shortfall in tax revenue was caused by the increase of additional measures from €3b to €6.4 in 2011. Ministry officials stress that:
-So far, the measure of notices of receipt has dramatically increases the amount of tax refunds.
-The measure of tax compensation, owed by the taxpayers has resulted in increase of tax refunds.
-The increase of exports had a negative impact on revenue. Export firms receive substantially increased tax refunds due to the increased value of their sales abroad.
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