Tax burden is 33% of GDP in 2010

Total tax revenue during 2010 went up by €54.6 million over the previous year, and stood at €2,048.9 million.

The largest increase of €22.6 million was registered in indirect taxes, which are defined as taxes linked to production and imports. In the year under review, these taxes stood at €855.6 million, representing 41.8 per cent of total tax revenues.

This tax category is mainly made up of VAT and taxes on products (including excise duties), both of which exhibited an increase. VAT went up by €20.2 million whereas an additional €5.9 million was recorded for taxes on products. Conversely, other taxes on production declined by €3.5 million.

Social contributions are compulsory actual social contributions paid by the employees, employers, as well as the self- and non-employed persons. This category represents 18.1 per cent of the total tax revenue and stood at €370.7 million, up by €19.0 million.

Direct taxes are current taxes on income and wealth plus capital taxes and other current taxes. Taxes on income are made up of both personal as well as corporate taxes. During 2010, direct taxes went up by €13.1 million, to €822.5 million, making up 40.1 per cent of total tax revenue. This rise was mainly the result of additional returns from personal income tax, by €22.6 million and other current taxes by €1.4 million. These were partly outweighed by a fall in corporate income tax of €10.6 million.

The overall tax burden denotes the total amount of taxes and actual social contributions expressed as a percentage of GDP. During 2010, the tax burden for Malta was 33.2 per cent, compared to 34.2 per cent recorded in 2009.