Data as of May 2020
Gross tax revenue collected as of May reflects the deterioration in economic activity as a result of COVID-19.
At the beginning of fiscal year 2020, a positive outlook was seen in terms of tax collection. Between the months of January and February, there was an increase in tax revenues compared to the previous year. These, accumulated to February, registered a year-on-year increase of 7%.
However, the effects of COVID-19 on supply, but in particular on national and international demand, added to other factors, reduced revenues significantly, leaving an accumulated variation as of May of -5% compared to 2019.
Regarding taxes levied inside and outside the country, the latter have been more affected in their interannual variation (VAT, imports and customs duties), with a decrease of -13%. However, at a more specific level, taxes on Capital Transfers (-61%), IUSI (-46%) and Exit from the Country (-32%) have been among the most affected.
The decrease in tax collection is evidenced with greater force in some economic activities, derived from the impact that the coronavirus mitigation measures have had on each of the sectors.
The activities of agriculture, public administration, financial intermediation and construction2 are the only ones that maintain a positive inter-annual variation of the collection for the month of May.
The services sectors, employees in dependency ratio and hotels and restaurants show the strongest negative year-on-year variation.
Of these, the most affected activity has been that of hotels and restaurants, which is directly related to the tourism sector, which has been one of the hardest hit worldwide.
In May, companies in the tourism sector reported an 82% drop in their turnover and a 27% reduction in their workforce.
Source: II Business Survey on the economic impact of the tourism sector (ASIES, 2020)
Association for Research and Social Studies (ASIES in Spanish)
Economic Research and Consulting Department:
Fabian Juarez
Luis San Jose
Pedro Prado
Ana Sofía Domínguez
