Tax Revenue Trends and Policy Updates for 2023

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Tax collection rose noticeably in 2022, with overall increases around 15 percent. This helped the State Tax Administration AEAT to surpass government projections by nearly 10,000 million, despite energy tax reductions implemented during the year. The minister of finance shared this assessment during a session of the Finance Committee in the Congress of Deputies, while the final December figures were still pending.

Although Jesús Gascón noted that 2022 revenue data were not yet final, he projected that the rise in tax receipts would resemble the level reached in 2021, when growth reached 15.1 percent. Through November 2022, AEAT reported even stronger growth at 15.9 percent, yet December was expected to temper the pace to a moderate 15 percent overall. If these trends hold, AEAT would have collected roughly 256,000 million, up from 223,385 million in the prior year, an increase of about 33,500 million. This growth occurred despite measures designed to moderate electricity prices, which had reduced revenue by about 6,149 million by November according to that month’s collection report.

In his remarks, Gascón outlined the 2023 tax control plan published in the Official State Gazette, highlighting rehabilitation and stability efforts as central aims for addressing the broader economic challenges.

While discussing pending legislative duties before the Finance Minister, Gascón referred to a ministerial order that has been in the consultation stage since February 21. The order is expected to authorize a raise and expand the amount of tax debt that taxpayers can claim or divide without requiring immediate approval or a guarantee, increasing from the current threshold of 30,000 euros to 50,000 euros. The appointment clarifies that in practice this measure would ensure that all personal income tax debts and debts owed by most self-employed individuals and small to medium enterprises qualify for deferment without the need for a bank guarantee or other collateral. A government spokesperson summarized the change as a way to provide relief and maintain liquidity for taxpayers under pressure. (Attribution: AEAT and Official State Gazette)

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