Jan-March revenue from new taxes under pro rata target

Central budget revenue from the recently introduced financial transactions duty as well as from several other new taxes were under the pro rata target by the end of March, detailed budget data published by the National Economy Ministry on Monday show.
    Some of the shortfalls were expected, but the main traditional revenue sources, such as VAT and excise duty, also generated less than their respective pro rata targets. Personal income tax was an exception, generating slightly more than targeted revenue.
    Central budget revenue on the whole reached 20.9% of the annual plan and expenditure was 24.6% of the yearly target, near the pro-rata figure.
    Revenue from the financial transaction duty, introduced this year and paid first in February, totalled HUF 27.5 billion in Q1, just 9.1% of the HUF 301 billion annual target.
    Revenue from the two new small business taxes, introduced as part of the government's job protection plan, came to just HUF 4.9 billion, compared to a full-year target of HUF 204 billion. As with the financial transactions duty, the revenue reflects payments over just two months.
    The new tax on utility lines brought in HUF 23.1 billion or 38.5% of the HUF 60 billion full-year target. The tax is payable twice a year, in March and September.
    Revenue from the new insurance tax, also due first in February, nearly matched the pro rata target, generating HUF 6.7 billion or 24.4% of the full-year target.
    The per-minute tax on telephone calls and text messages, introduced last July, brought in HUF 9.9 billion of the HUF 44 billion annual target in the first three months.
    Some of the revenue shortfalls were expected: Hungary's updated Convergence Programme put the likely shortfall from the financial transactions duty at HUF 80 billion and projected the two new small business taxes would generate HUF 173 billion less than planned because of a lower than expected participation rate. The programme noted that the small business tax shortfall would be a positive development as these companies would actually pay more in corporate tax and contributions.
    Revenue from the extraordinary bank levy, introduced for a temporary three years but now set to stay, was HUF 35.1 billion, only 0.6 percentage points below the pro-rate 25% of the annual plan.
    Of the biggest taxes, only personal income tax proceeds were ahead of pro-rata target, with revenue of HUF 388 billion or 25.8% of the full-year target in the first three months.
    Three-month revenue from VAT reached HUF 608 billion or 20.6% of the planned annual total. And excise duties generated HUF 179.1 billion or only 18.9% of the annual target in January-March.
    The HUF 111 billion spent on family allowances in the first three months was 24.5% of the slightly raised full-year spending plan, and was slightly down in one year.
    Spending on home construction subsidies was HUF 26.3 billion or 13% in Q1. It fell both in nominal terms and as a percentage of the full-year plan.
    Interest expenditure, at HUF 412.4 billion, was a third of the annual target, dropping HUF 40 billion in one year.
    Spending on unemployment benefits fell nearly HUF 9 billion from Q1 2012 to HUF 13.8 billion, and fell to 23.3% from more than a third of the respective annual targets.