Tax Revenues Forming Larger Part Of Maltese Government’s Income
According to figures released by the Maltese National Statistics Office, tax revenues
are forming an increasingly important part of the government’s overall
income.
According to the NSO, during 2003, tax revenues amounted to Lm603.6 million
and accounted for 81.6% of the government’s total recurrent revenues,
up from 77.8% in 2002. Indirect taxes, at Lm257.1 million or 42.6% of total tax revenues, were found
to be the most important source of revenue. These taxes include VAT, import
duties, excises and other specific taxes on services, and on financial and capital
transactions. Direct taxes, including income and corporate taxes, have also increased as a
share of total revenue from 32.7% in 2000 to 37.1% in 2003. However, while income
tax has maintained a consistent share over the four year period at 19.6%, the
share of corporate tax has increase to 13.9% from 10.3%. Meanwhile, the relative share of tax revenues made up from social contributions
by employees and employers has declined from 22.6% in 2000 to 20.3% in 2004. At 32.7%, the NSO notes that Malta’s tax-to-GDP ratio is considerably
lower than the EU-25 average of 40.3% for 2003. However the gap between Malta
and the EU-25 has narrowed considerably since 2000, when Malta’s ratio
was estimated at 28.5% compared to an EU-25 average of 41.3%.
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