NOVEMBER saw a surge in revenues for the Exchequer after stamp duty, income tax and VAT payments all shot up last month, according to the latest Exchequer figures published today.
Last month’s strong performance more than made up for weak tax takes earlier in the year and add to the mounting evidence that the economic recovery is slowly gaining ground.
“This is by some distance the strongest set of Exchequer figures produced this year,” said Peter Vale, a tax partner at Grant Thornton. “We are finally seeing positive employment and earnings growth translating into increased activity in the domestic economy. People have the confidence to divert savings to spending, which should give hope to retailers that spending through the holiday period will be strong.”
The Government’s finances are now almost bang on target thanks to the late surge and the State is now on track to exit the bailout later this month without missing debt targets.Some €34.97bn was paid into the Exchequer in the first eleven months of the year. That’s 0.6pc more than FInance Minister Michael Noonan targeted in last December’s Budget.
The Exchequer collected €520m, or 9.6pc more in November than it did in the same month last year as receipts from income tax rose 7.7pc and receipts from VAT jumped 9.5pc. Receipts from stamp duty surged 24.5pc as house prices rebounded in some areas and the number of transactions increased.
November is an important month for the Exchequer as companies pay around a quarter of all their taxes while many self-employed and farmers also file returns which means that income tax returns are almost twice the normal monthly average. November is a month which usually has high VAT receipts.