Saturday, 09 January 2021 07:32

Tax revenues in 2020 are 6.3% lower than in 2019, according to the Ministry of Finance

Written by Marcos Ramos

Last year the country experienced an economic crisis caused by the pandemic that in turn caused the tax collection for 2020 to close with a drop of US$541 million, contrasting with what the Ministry of Finance expected to receive in order to finance the General Budget for this year, this loss was presented in a fiscal transparency report from the Ministry of Finance.

According to data from the General Directorate of the Treasury, this year's collection of current income and contributions compared to that executed in 2019 has registered a drop of -6.3%.

In 2019, US$5,148.1 million were collected in current income and contributions, while up to December 31st, 2020, US$4,821.3 million were collected, generating a difference of US$326.8 million between the collections of both years and a difference of 9.9 million in the Budget.

The Ministry of Finance reported that at the end of 2020, similar levels were reached as in 2018. According to the Ministry of Finance, at the end of 2020, US$4,616.1 million were collected, which is US$541 million less than what was expected for this year's projected budget of US$5,157.1 million.

The amount collected in 2019 in taxes and contributions was US$4,913.7 million, compared to US$4,616.1 million in 2020, with a difference of US$297.6 million, representing a drop of 6.1%.

VAT showed a reduction of 6.9% in 2020, collecting US$2,063.0 million compared to US$2,215.1 million collected in 2019. Income fell by 1.4% in 2020, collecting US$1,907.3 million compared to US$1,933.5 million collected in 2019.

Likewise, non-tax revenues such as DUI, FEFE and others closed with a 12.5% drop, collecting US$205.2 million in 2020 compared to US$234.5 million in 2019.

In general, all the State's income closed last year with a lower collection, this means that the General Budget has to prioritize essential expenses over others, as explained yesterday by Finance Minister Alejandro Zelaya of prioritizing the Foreign Debt before the payment of FODES.

The main causes of the lower collection are due to the dismissals of workers and closures of companies that were affected by the quarantine decreed since March 2020.

Last modified on Saturday, 09 January 2021 07:35