Income tax payments to hit record high figure this year
The total income tax paid by Irish workers is on course to hit a record high in 2018, Exchequer figures have indicated.
Income tax of €1.7bn was collected in July, €29m more than the same month last year. In the first seven months of the year, workers paid €11.447bn in income tax including PAYE, up 6.8pc or €727m on a year earlier - reflecting the fall in unemployment. It means receipts are on course to hit the record level forecast in Budget 2018.
Tax revenues of €29.7bn were collected in the seven months to the end of July, 5.5pc higher than a year earlier. State spending outpaced revenue by €277m. Taking out the AIB share sale that flattered last year's numbers, the Exchequer balance showed an underlying decrease of €210m compared to the same period in 2017. The dip was primarily due to higher spending.
"The bigger picture is that buoyant tax revenues are being used to raise spending rapidly rather than to achieve a budget surplus, which the Government does now not expect to achieve until 2020. With external risks growing, hard choices should be made in the upcoming Budget to eliminate the deficit next year," Davy Stockbrokers economist David McNamara said.