Estonia's tax revenues up 7.2 percent
February tax revenues in Estonia rose 7.2 percent on year, driven by stronger energy consumption, fuel sales and economic activity, even as income tax collections dipped.
The state collected €1.18 billion in taxes last month, up 7.2 percent on year, according to the Estonian Tax and Customs Board (MTA). Growth was led by value-added tax (VAT), social tax, fuel excise and corporate income tax.
VAT revenue totaled more than €326 million, up nearly €50 million on year.
According to Raili Roosimaa, deputy director general for taxes at the MTA, energy use was a key driver.
"Electricity and gas consumption in February was significantly higher than a year earlier," she said. "Prices were also higher this year, which increased tax revenue from the energy sector."
Retail also contributed to growth, particularly a sharp rebound in motor vehicle sales.
"In retail, the increase was driven mainly by a clear recovery in car sales," Roosimaa said, noting sales volumes were up significantly on year.
Personal income tax revenue, meanwhile, fell to €241.7 million, down €14.6 million on year, due to a change at the start of the year in how the basic exemption is calculated.
At the same time, total payroll grew 4.8 percent, boosting social tax receipts by €19 million on year to €431.4 million.
Corporate income tax rose to €43.7 million, up more than €9 million. The increase was driven mainly by dividend payments from the private sector, particularly firms in professional services, information and communications, trade and energy.
Excise revenues up
Fuel excise revenue climbed €11.4 million on year to nearly €51 million, supported by higher demand.
"On year, consumption volumes increased for gasoline, diesel, specially marked diesel and heating oil released for consumption," Roosimaa said. "In February, total growth was 15.1 million liters, which boosted excise revenue, especially from gasoline and diesel."
Retail fuel sales rose the most in Harju, Pärnu and Tartu counties.
February tobacco and alcohol excise revenues were lower than a year earlier, affected by stockpiling in December, which was even stronger than the previous year.
The MTA expects tobacco excise revenue to rise in coming months, with early March data already showing an uptick.
As of March 1, Estonia's total tax debt stood at €356.4 million, €55.6 million of which is under payment plans.
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Editor: Aili Vahtla
