DREM releases Tax Revenue Statistics for 2006-2018

The Regional Directorate of Statistics of Madeira (DREM) releases today, a time series on Tax Revenue Statistics for the 2006-2018 period. The data for 2017 and 2018 are provisory and preliminary, respectively.

This series was produced by Statistics Portugal (INE) during the compilation of the national Tax Revenue Statistics and it is consistent with the base year 2011 of the Portuguese National Accounts. The terminology adopted assumes the conceptual framework of the European System of National and Regional Accounts (ESA2010).

Most of the information was provided by the Regional Directorate for Budget and Treasury to DREM in the scope of the Quarterly and Annual Public Administration Statistics (and also of the Excessive Deficit Procedure), complemented with other data gathered by Statistics Portugal from the Central Government.

These data refer to taxes that constitute a revenue of the Regional Administration of Madeira. These values are presented on an accrual basis and consequently, differ from the data released in the Annual Account of the Autonomous Region of Madeira.

However, it must be stressed that this information does not allow the determination of the “tax burden”. There are taxes and social contributions which are a revenue of other Government Sectors, namely of the Local and Central Administrations. Besides, the Value Added Tax (VAT) that constitutes a revenue of the Regional Administration of Madeira derives from the application of a formula (order 77-A/2014 of March 31st) and not from the effective collection of the VAT.

In 2018, the tax and social contributions revenue of the Region increased by 13.0%

According to the preliminary data of 2018, the tax and social contributions revenue of the Region, on an accrual basis, ascended to 931.1 million euros, up by 13.0% from the preceding year. That value was a maximum for the 2006-2018 period.

The individual income tax (IRS) stood at 227.7 million euros, increasing by 3.8% from 2017. This tax represents 63.8% of the total direct taxes revenue of the Regional Administration of Madeira (RAM).

In 2018, the corporate income tax (IRC) was 124.5 million euros, a 61.5% increase from 2017. IRC has had an irregular behaviour throughout the 2006-2018 period.

The Value Added Tax (VAT) was the tax that generated more revenue to the Autonomous Region of Madeira - 415.0 million euros (up by 10.9% from 2017) - representing 72.2% of the indirect tax revenue of 2018.

Regarding other taxes, the revenue from the tax on oil and energetic products (ISP) stood at 63.0 million euros (down by 0.2% from the previous year); the revenue from excise duties on tobacco (IT) was 34.9 million euros, 13.4% below 2017; the stamp taxes revenue (IS) of 2018 stood at 18.8 million euros, a 5.2% growth compared to the previous year; the excise duties on ethyl alcohol and alcoholic beverages (IABA) was 8.4 million euros, up by 3.2% from the previous year, while the tax on motor vehicle sales (ISV) stood at 10.1 million euros (-2.8% over 2017).

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