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The tax burden reaches a new high in public finance in 2018



The indicator of the tax burden registered in the Portuguese economy increased last year, contrary to government figures, and reached a new maximum in the series calculated by INE.

According to data published on Tuesday for 2018 public finances by the National Statistical Institute (INE), the tax burden (calculated as the sum of the revenue received by the state from taxes and social contributions, without taking into account the employers' imputed social contributions), according to the data of PUBLIC based on the data

This result surpasses the previous high of 34.4% in 2015 and 2017. The increase of Tax burden in 2018 occurs, although the government has even expected in the state budget for 2018 with a slight decrease of this indicator to 34.3% of GDP.

The INE figures now div shows that direct taxes, which include the IRS and the IRC, show a turnover in 2018 that is only € 1411 million above the estimated initial sales. For indirect taxes, including VAT and ISP, the difference is 1411 million. In terms of total social contributions, it is 444 million euros more than budgeted.

This increase in the tax burden was often used by the opposition to the government to criticize the budgetary policy pursued by Mario Centeno. The Minister of Finance has responded in recent years to the fact that the increase in the tax burden indicator is not due to the increase in tax rates, but to an increase in employment levels and an increase in consumption. of tourism, faster than the growth of the economy itself.

This means, says Centeno, that the weight of taxable income and VAT will increase on GDP, even though there are no tax hikes at this level.

To illustrate this point, at the press conference in which he responded to the public accounts numbers published by INE, the Minister of Finance pointed out that if the tax rates and tax rules were the same as at the beginning of the legislature, the IRS 1000 paid by the Portuguese

This increase in the tax burden is one of the main contributions to the budgetary outcome for 2018, with the deficit falling to zero. 5%, well below the originally forecast 1.1% and also exceeded the 0.7% estimated by the government in October last year.


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