The population figure of Estonia's capital Tallinn is likely to be by 10,000 people higher by the end of the year 2013 than it was at the beginning of the year and the income tax they will start paying to the city's budget should increase the city's revenues by several million euros, LETA/Public Broadcasting reports.
Tallinn's finance manager Katrin Kendra said that in 2012, 574 euros of income tax was collected by Tallinn per one resident, registered at the population registry. Considering that the average declared income for 2013 is expected to grow by 6.7% and in 2014, 6%, in 2014, the income tax per resident should be 648 euros.
Thus, when 10,000 resident are added, the income tax collection in Tallinn should increase by 6.48 mln euros next year.
Kendra said that the link isn’t that direct though since more people register as residents of Tallinn who have lower than average income and who hope to get some benefits from Tallinn, like kindergarten or school service or social support. "There are a lot of people who according to the Population Registry live in Tallinn but work and pay taxes in Finland or elsewhere abroad," she added.
"Thus we forecast, in a conservative way, an additional income tax from added residents in the total of 4 mln euros in 2014," said Kendra. In the middle of September, 428,509 people had registered Tallinn as their place of residence. Since the start of the year, that means an increase of 8,679.