Government's income tax revenue sees rapid yearly increases from 2013

Government's revenue from individuals' income tax has increased by €887 million between 2013 and 2022, information tabled in parliament shows.

The figures show the income tax collected from individuals and businesses, as well as government-issued tax refunds issued between 2013 and 2022.

The yearly increases in income tax collected from individuals can be attributed to Malta's rapid population boom which took place during the last decade. In fact, between 2013 and 2019 (a year before the pandemic) government's income tax revenue saw yearly increases reaching up to 12%.

The table indicates that between 2013 and 2022, government's revenue from individuals' income tax has maintained steady increases year after year, with 2020 being the only exception. The same cannot be said for tax revenue from the private sector's income tax.

In fact, while in 2017 government's revenue from businesses' income tax stood at €767,328,727, the figure slumped to €694,589,298 a year later. Similarly, in 2021 businesses netted the government €930,397,147 in income tax, however the state only pocketed €801,909,474 in 2022.

With regard to tax refunds, a decrease of €12,190,321 in tax refunds was registered between 2021 and 2022. On a general note, while tax refunds amounted to €74,700,000 in 2013, the figure fluctuated to €101,552,247 in 2022.

The figures show that between 2013 and 2022, government's income from taxes rose by 45%.