Malta’s tax revenues surge by €436.3m in 2023, despite slight drop in tax burden – NSO

Malta’s tax revenue in 2023 reached a record €5,595.4 million, marking an increase of €436.3 million over the previous year, according to the latest report from the National Statistics Office. Released on October 31, 2024, the report highlights a robust tax collection year, with tax revenues accounting for 27.1% of the nation’s GDP. However, this percentage represents a slight decrease from 2022, when the tax burden stood at 28.3%.

Direct taxes were the main driver of revenue, totalling €2,548.9 million, up €194.5 million from 2022. Personal Income Tax contributed the lion’s share of this increase, with an additional €138.2 million collected. Corporate Income Tax also saw an uptick, contributing €41.3 million more than in the previous year. Following new guidance from Eurostat, revenues from Malta’s Individual Investor Programme (IIP) were reclassified as tax income, boosting the “Other Current Taxes” category.

Indirect tax revenues also rose, totalling €1,978.3 million, which is 35.4% of total tax revenue. Key contributors included the Value Added Tax (VAT), which added €79.3 million, and taxes on products, which grew by €52.8 million. Higher revenues from motor vehicle registrations and document duties bolstered these gains, although declines in gaming and cement excise taxes provided a partial offset.

Social contributions from employees, employers, and self-employed persons amounted to €1,068.2 million, making up 19.1% of the total tax revenue. This category rose by €77.6 million from the previous year.

Environmental taxes also showed significant growth, reaching €315.5 million, an increase of €28.2 million. Of this, energy taxes—including those on transport fuels—accounted for the largest share, with emission trading permits generating €9.4 million more than in 2022.

In GDP terms, direct taxes contributed 12.3%, while indirect taxes and social contributions contributed 9.6% and 5.2%, respectively. Overall, the report reflects Malta’s stable and diversified tax environment, with tax burdens remaining close to the national average of 30.4% over the past three decades.