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Exchequer returns: Government almost €1bn ahead in tax take boost

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Minister for Finance Michael Noonan. Photo: Gareth Chaney/Collins

Minister for Finance Michael Noonan. Photo: Gareth Chaney/Collins

Collins Dublin, Gareth Chaney

Minister for Finance Michael Noonan. Photo: Gareth Chaney/Collins

The Government collected close to a €1bn more in taxes in the first two months of this year compared to the same period last year. The main reasons were higher income tax and VAT receipts.

In total, around €6.7bn in tax revenue was collected in the first two months of the year which was 5.4% ahead of Budget forecasts.

In the first two months of the year, the Exchequer collected almost €2.9bn in income tax or 6.8pc more than last year.

“February is a quiet month for VAT so the figure of most interest is income tax receipts,” said Peter Vale, a tax partner at Grant Thornton.  “These continue to remain buoyant, evidence of both more people at work and higher earnings.  With most people also paying less income tax from the start of the year, there is a higher percentage of disposable income, which is evidenced by increased retail spending (and strong VAT receipts).”

VAT receipts stood at €2.37bn by the end of last month which was 16.2pc increase on the same period last year..

Excise duties soared 20pc to  €778m and stamp duty receipts soared 42pc to €152m.

Online Editors