It will be no great surprise to readers that the tax burden shouldered by Portugal’s population has been increasing; by 4.4% in 2015 compared to the year before.
The total take by the State's Tax Authority remains below the European Union average of 39% of GDP. Portugal’s taxpayers were relieved of 34% of GDP, a whopping €61.9 billion in a country of just over 10 million people.
The Portuguese pay more tax than their Spanish neighbours (33.9%, but less than the Greeks who manage to pay 36.3% in tax as a percentage of GDP.
According to the thrilling Tax Revenues Statistics from the National Statistics Institute (INE), last year’s increase in Portugal mainly was from direct taxes (2.6%), indirect taxes (6.0%) and social security contributions (4.0%).
For direct taxes, there was a decrease of 1.4% in revenues from income tax (IRS), but an encouraging increase in corporation tax of 15.7%.
VAT receipts were up 4.7% and the revenue from the petrol and diesel tax (ISP) was up 10.4%.
The revenue from the nation’s smokers fell by 1.1% to the delight of the health service and the detriment of the treasury.
Winners for the State were: the take from the Municipal Property Tax (IMI) up a full 7.7%, a big rise in Vehicle Tax (ISV) up 22.8% and the tax due on property transfers which was up 21% in the year.
The rise in social contributions grew by 4.0%, reflecting the increase in the number of those with jobs, but in European terms this was one of the lowest contribution levels in Europe.
Adding these up, the Institute concludes that 2015 "was the third consecutive year in which the tax burden was above the GDP growth rate" as the public get squeezed faster than their ability to adsorb the rises.
Much of the increase is the continued "strengthening of measures to combat tax evasion through the e-invoice and inventory control initiatives," and also the rise of €630 million in social security contributions.
VAT accounted for 58.5% of revenues obtained from indirect taxes in 2015, with the amount collected growing 4.7% over 2014 due to the expansion of the tax base and strengthening of tax evasion control measures.
Though the tax rates seem high, especially to those on low incomes, Portugal must raise money to run its services and now has to pay interest and capital to its Troika of lenders.
Tightening up on tax evasion is long overdue but the Tax Authority still fails to catch an unacceptable number who fully expect others to pay the cost of roads, schools and hospitals.
One of the hidden costs of poor government, waste, cronyism, corruption and the adversorial stance taken by those at the head of the Tax Authority is the continuing high number of those whose mission is to evade rather than to avoid, taking the lead from a bloated State that has failed to curb expenditure while expecting the public to pay for its excesses.
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Portugal's tax burden again rises to fund the greed and corruption of the bloated Northern European banks.