Total tax revenue in 2023 went up by €436.3 million over the previous year and stood at €5,595.4 million, according to data by the National Statistics Office.
This figure represents 85.3 per cent of the total general government revenue collected in 2023.
Direct taxes amounted to €2,548.9 million, making up 45.6 per cent of the overall tax revenue. This marked an increase of €194.5 million compared to 2022.
The primary component within this category remains the Personal Income Tax, which rose by €138.2 million, while Corporate Income Tax, increased by €41.3 million over the previous year, the NSO noted in its release.
Indirect taxes also showed notable changes, amounting to €1,978.3 million - an increase of €164.3 million when compared to 2022.
This is equivalent to 35.4 per cent of the total tax revenue.
Within this category, Value Added Tax stood at €1,268.8 million, marking an increase of €79.3 million when compared to 2022.
Moreover, taxes on products totalled €566.4 million, reflecting an increase of €52.8 million over the previous year. This increase can be attributable to higher tax revenue generated from duty on documents, and the tax registration on motor vehicles, which was partially offset by a decrease in gaming taxes and the excise tax levied on cement.
Other taxes on production added up to €114.2 million, registering an increase of €30.7 million over the preceding year.
Social contributions paid by employees, employers, as well as self- and non-employed persons accounted for 19.1 per cent of the total tax revenue in 2023, totalling €1,068.2 million.
This reflects an increase of €77.6 million when compared to the preceding year.
Overall tax burden
The tax burden for Malta in 2023 stood at 27.1 per cent of Gross Domestic Product - a decrease of 1.2 percentage points when compared to the total tax burden of 28.3 per cent recorded in 2022.
The overall tax burden represents the total amount of taxes and social contributions, expressed as a percentage of GDP.
The data shows an average tax burden of approximately 30.4 per cent for the period between 1995 and 2023.
This implies a relatively consistent tax environment during these years.
By the end of last year, direct taxes (which also include capital taxes) constituted 12.3 per cent of GDP, compared to the share of indirect taxes which was at 9.6 per cent.
Meanwhile, the share of social contributions was at 5.2 per cent of GDP, reflecting a decrease of 0.3 percentage points compared to 2022.