Total tax revenues last year amounted to €2,048.9 million, with a tax burden of 33.2 per cent.

The National Statistics Office said that total tax revenue in 2010 went up by €54.6 million over the previous year, and stood at €2,048.9 million.

Tax revenue may be broadly classified under indirect taxes, direct taxes and social security contributions.

All three categories of tax revenue recorded an increase.

The largest increase, of €22.6 million, was registered in indirect taxes, which are defined as taxes linked to production and imports. These taxes stood at €855.6 million, representing 41.8 per cent of total tax revenues.

This tax category is mainly made up of VAT and taxes on products, including excise duties, both of which exhibited an increase. VAT went up by €20.2 million whereas an additional €5.9 million was recorded in taxes on products. Other taxes on production declined by €3.5 million.

Social contributions are compulsory actual social contributions paid by the employees, employers, the self- and the unemployed.

This category represents 18.1 per cent of the total tax revenue and stood at €370.7 million, up by €19 million.

Direct taxes are current taxes on income and wealth plus capital taxes and other current taxes.

Taxes on income are made up of both personal as well as corporate taxes.

In 2010, direct taxes went up by €13.1 million, to €822.5 million, making up 40.1 per cent of total tax revenue.

This rise was mainly the result of additional returns from personal income tax, by €22.6 million and other current taxes by €1.4 million. These were partly outweighed by a fall in corporate income tax of €10.6 million.

The overall tax burden denotes the total amount of taxes and actual social contributions expressed as a percentage of GDP.

Last year, the tax burden for Malta was 33.2 per cent, compared to 34.2 per cent in 2009.