Tax collection up 21% in 5 months

Higher levels of economic activity so far this year are reflected in  government tax collection.

Of the $2,661.8 million in current revenue collected by the Government in the first five months of the year, tax revenue represents a majority of 79%, according to a recent report by the General Directorate of Revenue (DGI). Within tax revenues, both direct taxes ($1,184 million, 17.4% more) and indirect taxes ($910.2 million, 30.2% more) grew.

The income tax declared by companies grows in an environment of greater economic activity. In March of this year the income tax was paid based on the results of the 2021 financial year, a period of more activity than 2020, when there were strong restrictions on the economy due to the pandemic.

15% Discounts
In the real estate tax, whose collection grew 37.5% year-on-year, the prompt payment measure would be reflected, which this year was more extensive and with a higher percentage. The DGI granted a 15% discount for those taxpayers who paid the property tax for the entire year before the end of April. This measure is usually until February and with a 10% discount.

Indirect taxes, for their part, are an indicator of consumption behavior. The tax on the transfer of personal property and services (Itbms) on sales generated $338.6 million in the first five months of the year, an increase of 37.4% when compared to the same period of the previous year, while the selective consumption tax records an increase of 34.9%.

Non-tax revenues, , generated $551.8 million, 20.1% more than the previous year, the main component of this group being tolls and Panama Canal services, which contributed $247.9 million.