Total tax revenue last year went up by €109.8 million over the previous year, and stood at €2,304.2 million. Tax revenue may be broadly classified under three main categories: indirect taxes, direct taxes and social security contributions, the National Statistics Office said today.

The overall tax burden denotes the total amount of taxes and actual social contributions, expressed as a percentage of GDP. During 2012, the tax burden for Malta was 33.7 per cent compared to 33.1 per cent recorded in 2011.

All three main categories of tax revenue registered a yearly increase. The largest rise, €86.8 million was in direct taxes, defined as current taxes on income and wealth plus capital taxes and other current taxes.

In the year under review, these taxes amounted to €951.0 million, or 41.3 per cent of total tax revenues. The rise in direct taxes was mainly the result of additional revenues from corporate and personal income tax,of €42.8 million and €41.6 million respectively. The revenues from other taxes in this category also increased.

Social contributions are compulsory actual contributions paid by the employees, employers, as well as self-employed and non-employed persons. This category represents 18.0 per cent of total tax revenue, or €414.4 million, and translating into a €14.0 million rise over the preceding year.

Indirect taxes are taxes linked to production and imports. During 2012, these went up by €8.9 million to €938.8 million, making up 40.7 per cent of total tax revenue. Higher returns from VAT, of €16.2 million, were partially offset by lower proceeds from other taxes on production (-€3.8 million) and from taxes on products including excise duties (-€2.9 million).

Permalink: Tax revenues in 2012 amounted to €2,304.2m, a tax burden of 33.7%