Monday 26 September 2016

Higher tax take gives Budget leeway

Published 03/07/2015 | 02:30

Finance Minister Michael Noonan said the increase in income tax was evidence of jobs being created
Finance Minister Michael Noonan said the increase in income tax was evidence of jobs being created

The State took in €805m more than expected in tax in the first half of the year, helped by strong corporation tax returns.

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The State took in €805m more than expected in tax in the first half of the year, helped by strong corporation tax returns.

Experts are predicting the State is well on track to beat its end-of-year targets, giving the Government leeway for the pre-election Budget.

The tax take at the end of June was €20.6bn, compared with a target of €19.8bn. Some €54m more was taken in via income tax than expected in the first six months, while VAT was €36m above profile.

Corporation tax was 28.1pc higher than expected. Compared with the same period last year, the tax take was €2.16bn, or 11.7pc, higher.

About €478m more in income tax was taken in so far this year compared with the first half of last year, while €441m extra was taken in via VAT.

The deficit - the gap between how much the State spends and takes in via revenue - has now dropped to €292m. Finance Minister Michael Noonan said the increase in income tax was evidence of jobs being created.

Irish Independent

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