Portuguese paid out €42 billion in taxes last year

Paul Rees 25 January 2018

petrolpump From a country of only 10.5 million people, Portugal’s government managed to extract more than €42 billion in taxes last year, nearly €2 billion more than in 2016.

According to figures published by the Directorate General of the Budget (DGO), direct taxes such as income tax and the tax on company profits, totalled €18.33 billion, up half a billion on 2016.

The directorate, led by Manuela Proença, reported that the increase in direct taxes is mainly due to the more companies paying more tax, just as well as the income tax take was unchanged at €12.2 billion.

The council tax ‘additional contribution’ raised an extra €129 million in its first year but the reticence of the energy sector to pay their ‘extraordinary contribution’ taxes and a lower contribution from the banking sector had to be made up from somewhere.

The answer has been indirect taxes where the State raised 23.85 billion, €1.35 billion more than in 2016.

This 6% increase was explained by the increase in VAT revenue to 15.97 billion (€894 million more than in 2016).

Tax on booze and the new ‘sugar tax’ on sweetened drinks grew 44.2% but Portugal’s smokers were a big disappointment with tax revenue down €70 million. No worries for the Finance Minister as the money kept rolling in from taxes on fuel, €3.36 billion and tax on new vehicle sales.

Comments

-1 #10 dw 2018-01-29 11:06

I wonder how much of that €42 billion was spent on education and public health services and how much on international debt repayments?

0 #9 Plain Speaking 2018-01-27 16:13

Quoting Ed:

Quoting Plain Speaking:
Quoting Ed:
Quoting Plain Speaking:
By my reckonings that equates to 4000 Euros for every citizen. How does this compare with other countries in the EU?

This OECD map is a rough guide to relative per head taxes.
https://data.oecd.org/tax/tax-revenue.htm

Thanks for the info. From what I can see Portugal tax revenue is 6600 USD per citizen. The OECD average is 14900. Although we all complain the 'weight' of taxation does not appear to be too extreme.
Need to look at this in comparison to average earnings...

Portuguese salaries at about 50% of OECD average so taxation weight is about the same. Personally I thought that it was worse.

0 #8 Ed 2018-01-27 15:01

Quoting Plain Speaking:

Quoting Ed:
Quoting Plain Speaking:
By my reckonings that equates to 4000 Euros for every citizen. How does this compare with other countries in the EU?

This OECD map is a rough guide to relative per head taxes.
https://data.oecd.org/tax/tax-revenue.htm

Thanks for the info. From what I can see Portugal tax revenue is 6600 USD per citizen. The OECD average is 14900. Although we all complain the 'weight' of taxation does not appear to be too extreme.

Need to look at this in comparison to average earnings...

-1 #7 Plain Speaking 2018-01-27 14:06

Quoting Ed:

Quoting Plain Speaking:
By my reckonings that equates to 4000 Euros for every citizen. How does this compare with other countries in the EU?

This OECD map is a rough guide to relative per head taxes.
https://data.oecd.org/tax/tax-revenue.htm

Thanks for the info. From what I can see Portugal tax revenue is 6600 USD per citizen. The OECD average is 14900. Although we all complain the 'weight' of taxation does not appear to be too extreme.

+4 #6 Biturbo 2018-01-27 09:45

Just imagine how much lower taxes could be if the Portuguese government didn't keep pouring tax payers money into banks run by criminals and incompetents. :-*

+2 #5 Denby 2018-01-27 09:43

Portugal raise's revenue through taxation, which is fair to most people as everyone is has to pay, whether you are a citizen or visitor.
There are some country's that raise revenue by producing and supplying war machines and ammunition to a some of the war zones in the world, thankfully Portugal is not one of these.

0 #4 Ed 2018-01-27 00:00

Quoting Plain Speaking: