Major decline in state debtors
The use of electronic transactions, the reduction of taxes as well as the favorable repayment arrangements (72 and 120 installments) have led to the reduction of state debtors by some 400,000 compared to 2018, according to the data of the Independent Authority for Public Revenue (AADE).
Tax administration officials say automated procedures for identifying debtors and even reminding taxpayers of their tax obligations have significantly reduced overdue debts as well as the number of state debtors.
However, despite the reduction of debtors and increased tax compliance, the AADE figures processed by the Parliamentary Budget Office are worrying: The total overdue balance at the end of January 2023 was 114.5 billion euros, increased by €1.5 billion compared to January 2022.
Even if the €26.3 billion that has been classified as bad debts is subtracted from this amount...