this employment growthbut most of all inflation keep filling up Tax Administration in the province. Collection of main government taxes in Alicante until last May, according to the latest report by the financial institution 1.605 million Euros, 20.5% more compared to the same period of the previous year. Or the same, the people of Alicante in the first five months of the year. They have already paid 275 million euros to the Treasury For concepts such as VAT, personal income tax or corporate tax.
Some of this increase in public revenues is explained by the improvement in public revenues. economic activity, This translated into a significant increase in consumption – we must remember that many of the restrictions adopted last year to contain the pandemic are still in effect – and also to a growth in employment and withholdings on payrolls.
But, of course, there has also been another determining factor.price increasecausative widening tax bases It resulted in an improvement not only in taxes directly linked to consumption, such as VAT, but also indirectly in income from other taxes, such as personal income tax. reassessment of pensions. Therefore, the Tax Office attributes a significant part of the increase in the collection of this latest tax to the improvement in retirees’ payments due to both the increase in the total volume of pensions and the increase in pensions. this has occurred in many cases which means higher retention percentages.
Thus, between January and May, income tax payments in the province are total. € 569.7 millionAlmost 95 million more, 20% more than in the same period of 2021.
However, the biggest difference is to be found. VATmanaged to increase by 145 million from 677.8 million last year. 823.5 21.5% more for this year. And it is, because it is a tax on it. final consumption, Each time the prices of products rise, so does the amount paid for these taxes. There would have been an even higher increase had it not been for the government’s decision to lower the VAT on electricity.
Of course, it is also true that all of this increase cannot be directly attributed to inflation, which closed May at 8.7%, so there is an important component of the improvement in activity in these figures.
This is also reflected in my life. Corporation tax, taxing the profits of companies and at the same time increasing 18.1% to 94.7 million euros; or, for example, tax external trafficIt reached 30.2 million, an increase of 37.3% applied to imports from third countries.
Single drop for collection custom taxes, 43.7%, but it should be noted that in this case the payments for this tax in the province – 12.7 million – by May – are very insignificant, since most of them are managed directly from their services. Madrid Tax Office.