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Labour market spur tax revenues (February 2017)

Tax revenue forecast for 2017 to 2019 is higher by EUR 93 million to EUR 176 million. (0.1 % to 0.2 % GDP) compared to previous forecast from November 2016. Ongoing growth of labour market and new legislative measures are main contributors to revised forecast. The revision has increased tax revenues by EUR 176 million for 2017 (0.2 % GDP), EUR 129 million for 2018 (0.1 % GDP) and EUR 93 million for 2019 (0.1 % GDP) compared to November. Lower CIT collection and higher amount of finished audits on excess credit in VAT drag down forecasted tax revenues in 2016 by EUR 72 million (0.1% GDP). Improvement in VAT effective tax rate overcomes its own pre-crisis maximum  in the third quarter of 2016.