Marić: Tax collection is 50 percent lower, and revenue from contributions is 27 percent lower

Finance Minister Zdravko Marić reported on Wednesday that budget revenues from tax collection in May compared to the same month last year fell by 50 percent, while revenue from contributions decreased simultaneously by 27 percent. Marić emphasized before the narrower cabinet of the Government that the assumptions were met that May would be the most challenging month for filling the budget, as April had "pulled a certain part of tax collection from the beginning of March." This, he said, proved to be true, and when looking at the entire month of May, tax revenues fell by just over 50 percent compared to last year, while contributions, especially for pension insurance, are down by 27 percent.

He added that these are "official figures and that he will not beautify anything," but also that it should be kept in mind that this year the last day of May was a Sunday, so there were two working days less than last year. When this is included, along with what "came into the budget" on Monday as a reflection of that weekend, then budget tax revenues are lower by 40 percent, and contributions by 23 percent, said Marić. He added that it is good that the COVID-19 epidemic is not deepening, as every subsequent month would then be "even more challenging."

Regarding fiscalized invoices, in April, he said, the total value of those invoices was about 40 percent lower compared to April last year, and in May the decrease was about 18 percent, with differences among activities. Retail trade is down by about five percent, and when considering that the relaxation of measures began on May 4, then the decline is only 0.7 percent, said Marić.

However, a noticeable decline is still evident, especially in hospitality and tourism, said Marić. Namely, as he stated, since the relaxation measures for hospitality facilities began on May 11, the value of fiscalized invoices is about 60 percent lower compared to the same period last year, and the overall decline in May is somewhat greater. 

Regarding June, he said that the dynamics of tax revenues are defined within the framework of the rebalance, and regarding the expenditure side, he said that significant items will first include pensions on June 8, followed by the payment of income tax refunds on June 12, which should be completed in the next two weeks from that date. The projection is that the total refund will amount to more than one billion kuna.

June is also the third month of support payments to employers of 4,000 kuna plus contributions for employee salaries, and this will, as he said, "be delivered according to the schedule." In June, he added, an entry into the international capital market is also expected.

When asked about entrepreneurs who have not yet received support for April, he said that payments in May were "delayed for objective reasons" compared to April and that it was necessary to "analyze whether there are any inconsistencies" among the applicants for support.

"If there were any delays, I am sure we will settle everything," said Marić. Commenting on the statements from the SDP that the Government is copying that party by shortening working hours, he said that the Government is not copying anything and that it started with measures from the very beginning of the crisis and that they were good and well-timed.

"The answer to whether we acted correctly lies in the data from the labor market," said Marić. He added that the "economy positively responded to the Government’s measures, especially when looking at the labor market where no dramatic negative shifts have been recorded compared to the corona." He announced that tomorrow at the Government session, "further steps regarding the functioning of the labor market" will be presented, and it can be said that the "government is coping adequately not only in the health sector but also in the economic part with the corona crisis."

{embed_digitalno_izdanje}{/embed_digitalno_izdanje}