A busy terrace. File photograph. / MIGUE FERNÁNDEZ

Tax Agency already collects more in Malaga than before the pandemic

The Hacienda has closed the first half of the year with 5 per cent more tax revenue than in 2019


The improving Covid situation and the subsequent lifting of restrictions by the authorities has seen a reactivation of the job market and the economy in Spain.

And now, the collection of taxes in Malaga has already reached pre-pandemic levels with revenue from IVA sales tax, corporation tax, income tax and excise duty on fuel, tobacco, electricity and alcohol beating the numbers registered before the coronavirus crisis.

The State has closed the first half of the year with 5 per cent more tax revenue than in 2019 and, if compared to 2020, the increase is 10 per cent.

The economic recovery explains a good part of this rebound, which will likely continue in the next balance sheets thanks to the boost from tourism, mainly domestic. But there are other factors, such as the ERTE furlough scheme, which at the expense of public coffers have made it possible to maintain household income.

In fact, Income Tax, which is linked to employment and wages, is the one that shows the best performance in the latest updated data from the Tax Agency. In the first six months, Malaga workers have contributed 442.9 million euros, 9.24 per cent more than in 2019. An amount to which must be added another 45.9 million euros (+ 12.53 per cent) of the Tax on Non-Resident Income.

«Not everything is economic recovery, though», highlights the general secretary of the Union of Finance Technicians (Gestha), José María Mollinedo, who also points out that «the collections of the deferred tax obligations of companies and freelancers helped boost the figures».

The income from the IVA sales tax is the most substantial chunk, although the 531.4 million collected represents 1.71 per cent less than in 2019.

Excise duty on electricity, alcohol, tobacco and fuel are almost double the 2019 figures, with a positive balance of 20.7 million compared to 10.4 million in 2019 (+ 98 per cent) and 9.7 in 2020 (+ 112 per cent).

Companies based in the province contributed 67.5 million euros in Corporation Tax in the first half of the year, 48 per cent more than in 2020 and 6.7 per cent more compared to the 63.3 computed in 2019.