The Spanish tax authorities (AEAT) have already received around €20 billion more up to October this year than over the whole of 2023. This is evident from the report of the AEAT for October. In October, tax revenues amounted to €49.86 billion, a growth of 10% compared to the same month last year. Until October, revenues increased by 8.3% (7.1% gross income and 2% return).
According to the AEAT, this is due to direct tax revenues, such as income tax (IRPF) and corporate income tax (impuesto de sociedades). But the end of VAT rebates on energy and electricity taxes also plays a role.
Taxes on wages, returns, and pensions
Withholding taxes on labour, income from movable assets, and return on capital ensure an increase in revenues. For example, income from deductions from employment and economic activities rose by 9.1% in October. That is slightly above 9% for the whole year. The increase in IRPF revenue was 7.8% in October. The development of pension deductions fluctuated around the annual average of 11.3%.
Corporate tax
Corporate income tax revenues increased by 12.3%. October is the month of the second installment, which explains the huge increase. Overall, corporate tax revenue rose by 14.1% through October.
Growth in revenues from VAT and excise duties
VAT revenue growth this year was 7.4% to October. AEAT points out that the recent increase in tariffs on basic foodstuffs will only be visible in the results in December.
In October, homogeneous excise revenues increased by 7.7%. Without electricity, for which the rate has already been reduced to 5.11%, they would only have increased by 1%. The growth was mainly driven by excise duties on tobacco products, which increased by 3.4% in October (2.1% for the year).
Excise duty on hydrocarbons, alcohol and plastics
Revenues from hydrocarbon tax were the same as in October 2023, breaking the good results of the previous months. Growth in August and September averaged 4.3%, and the cumulative increase for the year is 1.7%. The moderation in October was due to a decrease in diesel and petrol consumption. Revenues from alcohol taxes rose slightly in October (0.6%). Revenues from the excise duty on plastic fell by 6.4%.
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