Indirect tax takings miss their targets

The government has received its first major warning that the budget is in trouble in the form of indirect tax revenues for the first couple of months this year, and this at a time when its negotiations with the country's creditors are in full swing.

The data released on Monday by the State General Accounting Office showed a shortfall in revenues from value-added tax and special consumption taxes. Still, the excessive containment of state expenditure has resulted in a particularly high primary surplus, which softens the impact of that shortfall.

Combined with the new social security contributions system based on taxable income, it seems the tough austerity measures introduced since January 1 have led not only to a drop in consumption but also a rise in the phenomenon of undisclosed incomes.

Finance Ministry officials argue that a clearer picture on the course of...