Tax revenue from Spanish lottery prizes takes a nosedive in Q1

Tax revenue from Spanish lottery prizes takes a nosedive in Q1

Revenue from taxes on Spanish lottery prizes was down by nearly 18 percent in the first quarter of 2016.

According to El Economista, Spain’s tax agency or La Agencia Tributaria was able to raise €237.3 million on lottery prize tax in the first three months of the year, but that number was 17.7 percent lower than the €288.4 million that the government raised in the same period in 2015.

Data from the government’s Monthly Report Revenue showed that revenue from income tax made up for the losses from the lottery prizes. The tax agency reported grossing €236.4 million through income tax in the period ending in March, while proceeds from corporate tax contributed an addition €830,000.

Spanish Prime Minsiter Mriano Rajoy introduced a new tax plan back in 2013, which saw lottery draw winners paying a tax of up to 20 percent for prizes with an amount exceeding €2,500, as part of the government’s efforts to shore up its finances.

The Spanish tax agency saw an incremental rise in revenues over the past couple of years after the lottery tax hike was implemented. La Agencia Tributaria managed to raise €268.2 million in 2013, the year following the tax plan introduction. The amount grew to €458.9 million in 2014 and then eased slightly to €451 million in 2015.