Fall of $1.14 billion in state revenue gives perspective for the COVID-19 crisis
The state revenue report is mostly made of negative numbers due to consecutive falls in tax collection following the Covid-19 outbreak.
The lockdown and closure of most activities for five months is taking a huge toll on the country.
Accumulated current income as of July this year totaled $2.715 billion, reflecting a deficit of $1.372 billion compared to what had been budgeted and a decrease of $1.136 billion compared to that collected in July previous year, according to data from the Ministry of Economy and Finance.
Accumulated tax income, which represents 78% of total current income, totaled $2.115 billion, which reflects a decrease of 30.6%, compared to what was collected a year ago and a deficit of 32.4% compared to what the Government had programmed.
In this period, all tax revenues showed negative results, the most affected being the collection of the VAT (ITBMS) from sales, the selective consumption tax, the VAT for imports, and fuel consumption.
This shows the level of the slowdown in economic activities and the adverse impact of Covid-19.
On the other hand, non-tax income totaled $581.3 million so far this year, a figure that reflects a deficit of $317.7 million, compared to expectations, and a decrease of $172 million compared to what was collected in 2019.
The Ministry of Economy and Finance pondered in its report what was specifically achieved in the month of July, when the collection of tax revenue for that month left $407.8 million, which shows a surplus of $76.8 million.
Compared to the collection of the same period of the previous year, the increase was $80.3 million.
The July tax revenue collection is an extraordinary event, considering that in March an executive decree was approved that postponed the payment of various taxes for four months, including income tax and property tax.
The term granted expired on July 31, therefore, in July revenues that were not included in the original schedule were computed, which explains the rise in collection.
Accumulated current income as of July this year totaled $2.715 billion, reflecting a deficit of $1.372 billion compared to what had been budgeted and a decrease of $1.136 billion compared to that collected in July previous year, according to data from the Ministry of Economy and Finance.
Accumulated tax income, which represents 78% of total current income, totaled $2.115 billion, which reflects a decrease of 30.6%, compared to what was collected a year ago and a deficit of 32.4% compared to what the Government had programmed.
In this period, all tax revenues showed negative results, the most affected being the collection of the VAT (ITBMS) from sales, the selective consumption tax, the VAT for imports, and fuel consumption.
This shows the level of the slowdown in economic activities and the adverse impact of Covid-19.
On the other hand, non-tax income totaled $581.3 million so far this year, a figure that reflects a deficit of $317.7 million, compared to expectations, and a decrease of $172 million compared to what was collected in 2019.
The Ministry of Economy and Finance pondered in its report what was specifically achieved in the month of July, when the collection of tax revenue for that month left $407.8 million, which shows a surplus of $76.8 million.
Compared to the collection of the same period of the previous year, the increase was $80.3 million.
The July tax revenue collection is an extraordinary event, considering that in March an executive decree was approved that postponed the payment of various taxes for four months, including income tax and property tax.
The term granted expired on July 31, therefore, in July revenues that were not included in the original schedule were computed, which explains the rise in collection.