Growth in Spite of Slowdown (February 2020)

Forecast of tax and social security revenues for 2019 - 2023

 In 2020, the growth of tax and social security contribution revenues will slow down from 6.1% to 3.2%. The reasons include mainly the decline in wage growth and last year’s legislative measures. From 2021, the revenue growth will be revived again, thanks to the re-accelerated growth of wages and household consumption. In 2023, the revenue growth will be hit by the end of the Euro fund period. Compared to the previous tax forecast from November, we increase the tax and social security contribution revenues by EUR 78 to 84 million in 2020 to 2022, mainly due to the strong VAT growth in the second half of 2019. From 2020, the property taxes contributes to higher revenues, with the municipalities breaking the long-term taboo increasing the rates by 34 percent in average.