«The Central Bank sees the risk that the plan for VAT revenue in 2024 may not be met. And the warning that this plan may be optimistic and there is a risk of not collecting around 150 million euros, about 0.2 percent, we also wrote in our annual report when considering the budget project,» said G. Shimkus at a press conference on Tuesday.
«This is one of those cases where we would be very happy to be wrong. But January data show that the mentioned risk may become a reality,» he added.
The Chairman of the Central Bank explained that during periods of high inflation, the government’s revenues from VAT significantly increase. However, both in 2023 and in 2024, when inflation began to decline, the volume of the aforementioned receipts in the budget decreased.
«There is a very clear trend that during periods of inflation exacerbation, the government’s revenues from VAT sharply increase. In 2022, VAT revenues increased by more than a fifth. And in 2023, when inflation subsided, the growth of VAT came to naught. We see that in 2024, this portion has decreased significantly and does not correspond to the level of previous years,» he explained.