BRUSSELS – The tax revenue from the first five months of 2007 is more than EUR 600 million less than anticipated. This emerged from a memo from the Finance Ministry to the government.

During the budget audit in March the former government counted on an increase in tax revenue of 6.5 percent compared to a year earlier. This was needed to realise a budget surplus of 0.3 percent of the gross national product in 2007.

The figures for the first five months show that this objective will be difficult to achieve. The increase in the tax revenue has only come to 4.7 percent so far.

The disappointing figures can be attributed mainly to lower advance payments by companies. The new government will have to work with EUR 600 million less than has been budgeted. And that will not be fully compensated by higher than expected growth.

[Copyright Expatica News 2007]

Subject: Belgian news