Once the 2013 VAT hike started to lose its effect, revenues from the personal income and Social Security taxes also fell. Total revenues between January and November 2013 by a slim 0.9% compared to the same period last year.
With a month left in the fiscal year, Finance still needs to raise 20.24 billion euros to meet its annual revenue goal. Regardless of whether this goal is met (the government is banking on improved spending in December and the effects of holiday bonuses), paltry revenue numbers show that we still need sweeping tax reform that widens the tax base and lowers tax rates. This is the only way that Finance can increase overall revenues.
