2017 saw an increase in tax revenue by €381.4 million, bringing the total up to €3,608.2 million. An increase was seen in all three main categories: indirect taxes, direct taxes, and social security contributions.
The largest increase of $189.3 million was in direct taxes, following the trend of 2016, raising the total to €1,589.2, making up 44% of total tax revenue. The increase came from higher income tax receipts from individuals amounting to €101.2 million, and from corporations amounting to €81.7 million.
Indirect taxes, meanwhile, made up 39.5% increasing by €139.3 million bringing up a total of €1,423.8 million. This is split into VAT and Taxes on Products, which increased by €98.6 million and €45.8 million, respectively.
Malta’s tax burden for 2017 – which is the total amount of taxes and actual social contributions – rose by 0.7% from 2016, leading the 2017 tax burden to amount to 32.4% of GDP.