Revenue from VAT and excise taxes in the first month (March) of the war in the Middle East. This occurred mainly due to the sharp increases in fuel prices, before they were curbed by the... emergency measures in effect since April 1, with the reduction in the price of diesel at the pump being the key measure.
According to the final budget execution figures for the first quarter of the year announced by the General Accounting Office ( GAO), it appears that in March specifically—despite reduced consumption due to higher prices— VAT revenue reached 2 billion euros (1.915 billion euros) and exceeded the target by 87 million euros. Revenues from Excise Taxes (ET), on which VAT is also levied, were also €80 million higher than the target (amounting to €595 million).
The surplus in budget revenue from VAT, a result of inflation and rising prices in general, is a key driver of government revenue. This trend fully justifies the government’s insistence on not “tinkering” with VAT rates on a range of widely consumed goods and services, in order to ease the burden on household budgets.
In any case, inflation continues to play a catalytic role in boosting VAT revenue. Any thoughts that may have existed among certain government officials regarding adjustments to the two tax rates (13% and 24%) were abandoned in the... the name of fiscal stability and targeted measures, so that the benefit for citizens would not be lost somewhere in the... gears of the market.
The “snapshot” of revenues
However, despite the unstable environment and the uncertainty caused by the ongoing energy crisis, the state budget performed well in the first quarter of the year, with a primary surplus of €4.369 billion against a target of a primary result of €2.732 billion and a primary surplus of €4.498 billion for the same period in 2025.
The difference on the revenue front continues to be driven by VAT and excise tax collections, despite the overall decline recorded during the January-March 2026 period.
Transfers and sales of goods and services make a significant contribution to revenue.
Specifically:
VAT revenue amounted to €7.402 billion and is €438 million higher than the target. Even after deducting the €306 million from the Egnatia Motorway concession contract, VAT revenue is €132 million higher than the target.
Excise tax revenue amounted to €1.464 billion and fell short of the target by €143 million.
Property tax revenue amounted to €1.030 billion, falling short of the target by €15 million.
Income tax revenue amounted to €5.729 billion, falling short of the target by €41 million. Of this amount: personal income tax increased by €183 million, while corporate income tax decreased by €116 million and other income taxes decreased by €108 million compared to the target.
Revenues in the “Social Contributions” category amounted to €14 million, close to the target.
In the “Transfers” category, collections amounted to €1.834 billion, an increase of €60 million compared to the target. The amount of €1.754 billion relates to revenues from the Public Investment Program (PIP), which are €82 million higher than the target.
In the “Sales of goods and services” category, revenues amounted to €650 million and include €306 million from the Egnatia Odos concession contract. Excluding this amount, revenues amounted to €344 million, an increase of €71 million compared to the target.
Revenues in the “Other current revenues” category amounted to €756 million, an increase of €124 million compared to the target. An amount of €177 million relates to Public Investment Program (PIP) revenues, which are €119 million higher than the target.
Total revenue in the “Taxes” category amounted to €17.182 billion for the quarter, and includes: (a) €306 million from the Egnatia Motorway concession agreement, and (b) the amount of €135 million from the second installment of the fee for the concession of a casino operating license at Elliniko, which was scheduled to be collected at the end of 2025. Excluding the aforementioned amounts, tax revenues amounted to €16.741 billion, down by €133 million, or 0.8%, from the target.
Expenditures
Government spending played a significant role in the final fiscal outcome. In the January–March 2026 period, they amounted to €17.039 billion and were €895 million below the target (€17.934 billion) included in the explanatory report of the 2026 budget. They are also up by €953 million compared to the corresponding period in 2025.