Huge rise in small debtors
The absolute majority of taxpayers with dues to the state owe no more than 500 euros each
Four out of seven (57.4%) state debtors have arrears that do not exceed 500 euros apiece, according to data from the Independent Authority for Public Revenue and the Parliamentary Budget Office. Worryingly, within a year state micro-debtors have increased by 692,413, to reach 2,427,795 taxpayers, figures reveal, which constitutes an annual increase of almost 40%. Officials at the Budget Office link the increase in micro-debtors to the change in the time of certification and payment of the Single Property Tax (ENFIA) in the current year, and therefore it is due to a earlier start to the taxpaying season this year.
Of great interest is the fact that 23% of the new overdue debt – i.e. that created within 2022 (equivalent to €1.1 billion) – comes from just 22 debtors. In total, between January and July, “fresh” overdue debts amounted to €4.84 billion.
At the same time there has been an increase in the total overdue balance on an annual basis in almost all categories of debt, with the largest coming from debtors with arrears of more than €1 million (the increase of the overdue balance in this category is €2.7 billion), the number of which has increased by 319 people. It is noted that 80% of the total overdue balance and only 0.2% of the number of debtors are concentrated in this particular category.
Corporations play an important role in the increase of overdue arrears, as the debts arising from them have increased by €2.3 billion on an annual basis. In total, corporations owe €65.8 billion.
It is noted that 23.2% of the total overdue balance, corresponding to €26.1 billion, concerns debts that are characterized as uncollectible.
Consequently, the “real” overdue balance – i.e. that which can actually be collected – amounts to €86.5 billion.
Budget Office data analysis reveals that only 51.4% of the actual overdue debt, which corresponds to €44.4 billion, comes from tax debts (direct and indirect taxes, property taxes, VAT, special consumption taxes etc). The rest concerns various other categories of debt, which show a low collection rate.