Issue 59: Tax Revenues – I-III Quarters, 2015

6.11.2015

Tax Revenues – I-III Quarters, 2015

Issue #59 / 06.11.2015

During the first three quarters of 2015, the tax revenues of the state budget increased by 11.2% compared to the corresponding indicator of 2014. In this period, 75.8% of the planned annual tax revenue for state budget has been realized.

The structure of state budget tax revenues has remained similar to the corresponding indicator in 2015. The revenues so far are composed as follows: value added tax (VAT) – 46.1%; income tax – 26.2%; profit tax – 15.3%; excise tax – 11.2%; and import tax – 0.9%. Compared with the same period in the previous year, the revenues increased for VAT (6.7%), profit (30.0%), income (15.1%) and excise (5.5%) taxes, while it declined for import tax (-30.2%).

Source: Ministry of Finance of Georgia

In the first three quarters of 2015, state budget revenues increased by 12.4% compared to the corresponding period of the previous year and amounted 6,426 mln. GEL.

In this period, the structure of the state budget revenues remained the same. Taxes are responsible for 93.0% of the state budget revenues, while 3.3% comes from grants, and 3.7% come from other receipts (including revenues from interests, dividends, rents, realization of goods and services, license and permit fees and transfers). All three components have increased in the first three quarters of 2015 compared to the same period in the previous year. Specifically, tax revenues rose – by 11.2%, grants rose – by 56.1% and other receipts rose – by 14.7%.

Tax revenues increased in each of the three quarters of 2015 compared to the corresponding period in 2014. The first quarter saw an increase of 11.5%, while the second quarter rose by 12.1% and the third quarter experienced a10.1% rise.

Looking at monthly figures, the highest rate of growth of tax revenues was recorded in March (18.5%), while the lowest was – in February (4.8%).

Source: Ministry of Finance of Georgia

During the first three quarters of 2015, 26.2% of the tax revenues comes from income tax. Income tax revenues increased by 15.1% compared to the corresponding indicator of the previous year and amounted 1,467 mln. GEL. The indicator of income tax compliance is 75.2%.

During the assessed period, revenues from income tax increased every month except March (-0.1%). The highest growth was recorded in April (38.1%) and May (35.8%).

In the first three quarters of 2015, 46.1% of the tax revenues came from VAT. VAT revenue increased by 6.7% compared to the corresponding indicator of 2014 and amounted to 2,583 mln. GEL. In this period 73.7% of the planned annual VAT revenue has been realized.

During the first three quarters of 2015 , the revenues from VAT increased every month compared to the previous year except in May (-1.6%). The highest monthly growth for this indicator was recorded in March (12.0%) and February (24.6%).

Source: Ministry of Finance of Georgia

During the opening three quarters of 2015, excise tax revenues represented 11.2% of the total tax revenues. Compared to the corresponding period in 2014, the volume of excise tax revenues increased by 5.5% and amounted 625.5 mln. GEL. The indicator of excise tax compliance is 69.5%, compared to the annual plan.

During the first three quarters of 2015, the excise tax revenue increased in the first (11.3%) and third quarters (8.4%), while it declined in the second quarter (-2.5%).

During the first three quarters of 2015, compared to the first three quarters of 2014, the volume of import tax revenues declined by (30.2%)and amounted to 51.3 mln. GEL. The share of import tax in the total tax revenues also declined (-0.5% point). Compared to the annual plan, the indicator of import tax compliance is 75.4%.

During this period, revenues reduced in every month. The highest reduction was recorded in June -(41.6%), May (-39.1%) and August (-39.0%), which is due to the decline of imports in the corresponding period.