Thursday 27 October 2016

Brexit impact hasn't hit yet as country's finances up by €500m

Published 05/10/2016 | 02:30

Britain's Prime Minister Theresa May. REUTERS/Toby Melville
Britain's Prime Minister Theresa May. REUTERS/Toby Melville

Brexit is not yet having a significant impact on the Ireland's finances.

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Officials in the Department of Finance had predicted that the first real effect of the British referendum would become visible last month.

However, ­exchequer returns show that ­Revenue has collected €500m more this year than planned and the trend has continued in September.

Asked about the impact of Brexit, which British Prime Minister Theresa May said this week would be triggered next spring, principal officer with the Department of Finance, John Palmer said: "Given that we marginally went over the monthly target, it's not being seen yet. That's all we can say."

Despite the positive figures, key areas such as income tax and VAT are running behind target.

In the nine months to the end of September, income tax, including the USC, amounted to just under €13bn, almost 1pc below expectation.

VAT has amounted to just over €10bn, which is €278m less than forecast.

However, Mr Palmer said the VAT revenue can be partly explained by the fact that inflation has remained low.

Irish Independent

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