Business Irish

Friday 9 December 2016

Exchequer Returns: Tax take in first half of year €742m ahead of expectations

Published 04/07/2016 | 16:32

Responding to a parliamentary question on the matter from Fianna Fail finance spokesman Michael McGrath last Wednesday, Finance Minister Michael Noonan said:
Responding to a parliamentary question on the matter from Fianna Fail finance spokesman Michael McGrath last Wednesday, Finance Minister Michael Noonan said: "Nama intends to extend funding to willing Nama debtors and receivers on commercial arms-length terms". Photo: Irish Independent

The tax take for the first half of the year is €742m better than forecast.

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The latest Exchequer Returns show that €22.5bn has been brought into the State’s coffers through tax since January – 3.4pc above profile.

June was not a VAT month and closed the month 36pc below expectations. But in cumulative terms, VAT receipts are up €219m year-on-year.

Income tax is on target at €8.7bn, while VAT is €231m below expectations so far this year at €6.22bn.

The surge in corporation tax is continuing, with receipts 18.9pc, or €505m, above profile for the first six months of 2016.

The Exchequer last month record a deficit of €1.14bn as compared to a deficit of €292m in the same period last year.

This was driven primarily by the base effect of €2.1bn received by the Exchequer in 2015 from the sale of PTSB shares and capital notes and a transfer from the national pension reserve fund.

Excluding these one-off transactions the Exchequer shows an underlying year-on-year improvement of €1.29bn.

Commenting on the end-Quarter 2 2016 Exchequer Returns Minister for Finance Michael Noonan T.D. said: "The Exchequer Returns for the first half of 2016 show our plans to fund vital public services are on track and that collecting revenues from a broad base continues to pay dividends for Irish taxpayers.”

“The main types of taxes are all performing broadly as anticipated and that has resulted in cumulative tax receipts being up €742 million (3.4pc) on profile, which represents a 9.2pc (€1,901 million) increase when compared to the same period in 2015.”

“The results being published today support our financial position for this year and also support our plans for 2017’s budget.”

Minister for Public Expenditure and Reform, Paschal Donohoe T.D. said: “The latest returns indicate that spending is being managed by Departments broadly in line with the allocations set out in the revised estimates volume, with overall expenditure on delivering public services and investing in infrastructure slightly below profile.   We are now halfway through the year and just under 50% of Departmental allocations spent.   For the second half of the year Ministers and Departments are conscious of the importance of managing the delivery of public services within their annual allocations.”

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