Tax, spending cuts 'broadly' hitting targets
THE amount of tax collected by the State and the amount spent on public services and debt repayments remains broadly on track, the Department of Finance said yesterday.
Trends seen in the first half of the year continued into July and August as the State continued to collect more income tax following the introduction of the Universal Social Charge but also collected less VAT as consumers kept away from the tills.
Almost €8.3bn of income tax was deducted from wages in the first eight months of the year or almost 25pc more than in that period last year.
Despite this significant hike, total income tax collected was 1pc below target when certain anomolies linked to DIRT tax are excluded.
Lower returns from VAT continued to depress overall targets as consumers continued to shy away from spending.