After a record tax revenue in 2024, the Ministry of Finance is preparing for another historic high of around 65 to 66 billion euros or even more in 2025.

The draft budget for 2025 envisages an increase in tax revenues of at least two billion euros. And this time, the additional revenues will come from income tax, not from VAT or special consumption taxes.

Tax revenues have consistently exceeded estimates since 2021. This is due to several factors: higher inflation, which translates into higher prices and thus higher VAT revenues; relatively high growth, with higher incomes and profits leading to higher direct tax revenues; and the digitalisation of tax payments and other measures curbing tax avoidance. The above factors have more than offset the reduction of various taxes, such as the solidarity contribution.

The General Accounting Office (GAO) is currently fine-tuning revenue and expenditure estimates that will be included in the 2025 budget draft, which is due to be submitted to Parliament on October 7. With the deadline for filing tax returns on August 2 for individuals and August 8 for companies, there are no precise estimates of this year’s tax revenues yet. However, officials at the GAO are confident that they will exceed €64 billion.