Mef: Revenues up €33.8 billion in the first half of 2025 (+8.4%)

Tax and social security revenues for January-June 2025 increased by €33.8 billion (+8.4%) compared to the same period in 2024: tax revenues increased by €21.3 billion (+7.8%), and social security revenues increased by €12.5 billion, up 9.7%. This is according to a statement from the Ministry of the Economy and Finance.

The comparison of self-assessed Irpef, Ires, and Irap taxes is not homogeneous - the note explains - due to calendar effects (the payment deadline of June 30, 2024, fell on a Sunday, payments were therefore postponed to July 1) and the postponement of the payment deadline for the Irpef and Ires balance and advance payments for ISA and flat-rate taxpayers from June 30 to July 21, 2025.

Revenues from assessment and control activities increased by €596 million, or 8.3%, as did revenues from local authorities (+€3.959 billion, or 14.8%). Revenues from direct taxes amounted to €156.8 billion, or €14.8 billion, or 10.4%, while those from indirect taxes amounted to €119.9 billion, or €4.06 billion, or 3.5%. Among direct taxes, personal income tax revenue stood at €113.4 billion, or €502 million, or 0.4%. Employee withholding taxes decreased by €790 million, or 0.7%: the reduction in revenue is attributable to the revised tax wedge measures introduced by the 2025 Budget Law. Self-assessed payments increased (+€895 million, or 34.4%).

The comparison for IRES is also uneven: revenue totaled €17.01 billion (+€9.08 billion). Increases were also seen for the substitute tax on capital income and capital gains (€1.3 billion) and the substitute tax on the asset value of pension funds (+€1.24 billion), reflecting "the favorable performance of managed savings in 2024, which saw both significant growth in the number of outstanding managed positions compared to 2023 and high investment profitability," the Ministry of Economy and Finance explains.

Among indirect taxes, VAT revenues increased by 2.6% to €82.2 billion. Excise tax revenues on energy products increased by €229 million, or 2%. Local government tax revenues rose sharply, rising 14.8% to €3.96 billion, reaching €30.7 billion. These include the regional income tax surtax (€438 million, or +7.2%), the municipal income tax surtax (€169 million, or +7.4%), and IRAP (regional production tax) revenues (€3.360 billion, or +36.8%). Finally, INPS contribution revenues amounted to €129.7 billion, up €12.1 billion compared to 2024 (+10.3%), due to increased revenues from both the private sector (+11.9%) and public sector workers' compensation schemes (+6.2%). "The observed trend is influenced by the positive trend in the labor market as well as the expiration, starting January 1, 2025, of the contribution exemption granted to employees for 2024."