Business Irish

Thursday 29 September 2016

Tax intake better than forecast, while VAT receipts are weaker

Published 05/05/2015 | 16:51

GOLDMAN Sachs said the yen and euro will weaken on further quantitative easing (QE) in Japan and Europe, while the Federal Reserve refrains from raising interest rates when US policy makers meet this week
GOLDMAN Sachs said the yen and euro will weaken on further quantitative easing (QE) in Japan and Europe, while the Federal Reserve refrains from raising interest rates when US policy makers meet this week

The state took in over a half a billion euro more in tax than targeted for the first four months of the year, but VAT receipts are weaker than expected.

  • Go To

Some €12.86bn in tax was collected up to the end of April, 4.2pc or €518 million more than targeted, according to the latest Exchequer returns.

But the tax take for April was 1.1pc less than expected.

And the amount of money collected through VAT for the first four months is proving to be less than thought.

For the first four months of the year, €4.03bn was collected in VAT, around €43 million less than expected.

However, compared with the same period last year, VAT receipts were up €377m, or 10.3pc.

VAT receipts for last month were also down 22.2pc, but the Department of Finance said this was due to the fact that April was not a VAT month.

Income tax receipts were down 5.2pc last month, or €83 million. The Department said this was wholly due to weaker DIRT receipts on the back of lower interest rates.

Although we have been in a low interest rate environment for some time, the is the first month this year were income tax receipts came in lower than expected.

However, monthly figures can be prone to volatility, and  for the year-to-date, income tax receipts are 0.9pc, or €53m, above profile.

Net spending, for the first four months of the year, totalled €13.7bn. This was around €218 million below profile, but €65 million higher in year-on-year terms.

The exchequer deficit at the end of April stood at €2.32bn, compared to a deficit of €4.75bn at the same time last year.

Online Editors

Read More

Promoted articles

Editors Choice

Also in Business