Friday 21 July 2017

Tax receipts €520m shy for year to date, as economy remains ‘extremely weak’

TAX receipts so far this year are coming in at €520 million – or 1.6pc - below projections, according to latest exchequer figures from the Dept.of Finance.

The figures – including the key month of November - show the deficit stands at €21.4bn.

That means revenues stand at €31.8 billion are over €2.3 billion - or 7.9 per cent - higher than in the same period last year.

This increase is due mostly to income tax growth of 22.5pc over the year.

The Government plans €3.8bn in cuts and tax increases in next week’s much-anticipated abudget.

Says Alan McQuaid, chief economist at Bloxham in Dublin: “The domestic economy remains extremely weak.. The Government needs a turnaround in private demand if it is to reach the sort of annual growth rates necessary to make inroads into its debt."

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