Decline on the horizon

The current tax and social security contributions forecast expects a decline in revenues on the whole horizon 2019 to 2022. While the 2018 estimate is reduced only slightly, the current year’s estimate is forecast to decline by EUR 35 mill. In the following years, the tax shortfall deepens to nearly EUR 170 mill. and by the end of the forecast horizon the drop is expected to reach a peak of EUR 98 mill. The main reasons for this are a slowdown in the economy and legislative measures – specifically the abolition of the Special levy for retail sector. Conversely, the improvements in the tax collection efficiency increases revenues and offsets the negative effects.