In 2024, total tax revenue stood at €6,769.9 million (€6.7 billion), indicating a tax burden equivalent to 29.3 per cent, the NSO said Wednesday.
Tax revenues increased by €1,179.0 million over the previous year, reaching a total of €6,769.9 million. This figure accounted for 86.4 per cent of total general government revenue in 2024.
All main categories of tax revenue recorded growth, with direct taxes remaining the largest component, followed by indirect taxes and social contributions, the NSO added.
Direct taxes totalled €3,457.5 million, making up 51.1 per cent of the overall tax revenue. This marked an increase of €908.6 million over the previous year. The primary component within this category remains the Personal Income Tax, which rose by €238.1 million, reaching €1,770.7 million. Corporate Income Tax registered a significant increase of €588.6 million, standing at €1,424.7 million.
Indirect taxes amounted to €2,139.9 million, an increase of €166.1 million when compared to 2023, and represented 31.6 per cent of total tax revenue. Within this category, the Value Added Tax (VAT) component stood at €1,401.2 million, up by €132.4 million from the preceding year. Moreover, Taxes on Products totalled €594.2 million, an increase of €31.9 million compared to 2023. This increase was mainly attributable to higher tax revenue generated from duty on documents and gaming taxes. Other Taxes on Production increased by €4.1 million, reaching €117.9 million in 2024, the NSO said.
Social contributions, which include payments by employers, employees, as well as self- and non-employed persons accounted for 17.3 per cent of the total tax revenue in 2024, amounting to €1,172.5 million. This reflects an increase of €104.4 million when compared to the preceding year.
The overall tax burden represents the total amount of taxes and social contributions, expressed as a percentage of Gross Domestic Product (GDP). Malta’s total tax burden stood at 29.3 per cent in 2024, an increase of 2.6 percentage points over the 26.7 per cent recorded in 2023. The data shows an average tax burden of approximately 30.3 per cent for the period between 1995 and 2024. This indicates a relatively stable tax environment during these years, with variations around this average, including values ranging from as low as 25.5 per cent and as high as 34.0 per cent.
By the end of 2024, direct taxes (which also include Capital taxes) accounted for 15.0 per cent of GDP, an increase of 2.8 percentage points compared to 2023. Indirect taxes represented 9.3 per cent of GDP, while the share of social contributions made up 5.1 per cent of GDP.
Income Tax receipts by ESA 2010 institutional sector
In 2024, the Household sector contributed more than half of the income tax collected by the general government, accounting for 55.4 per cent of the total, equivalent to €1,775.2 million. Contributions from the Non-Financial Corporations and Financial Corporations represented 22.6 per cent and 21.7 per cent, respectively. Non-profit Institutions serving Households, General Government and the Rest of the World collectively made up the remaining 0.4 per cent of the total.
In absolute terms, income tax receipts increased by €829.4 million over 2023, primarily driven by higher receipts from Financial Corporations (€302.6 million) and Non-Financial Corporations (€279.5 million). Income tax paid by Households also rose significantly, increasing by €238.9 million during the year.
Environmental taxes
In 2024, total environmental tax revenue increased marginally by €1.0 million, reaching €312.5 million. This figure represents 4.6 per cent of total revenue collected from all taxes and social contributions, and 1.4 per cent of GDP. Energy taxes (which include taxes on transport fuels) constituted the largest share of environmental taxes and increased by €5.0 million, mainly due to higher revenue from emission trading permits (€4.5 million). This increase was partly offset following a decrease in revenue generated from Transport taxes.
