Wednesday 17 October 2018

Tax receipts on target as the State rakes in €47bn

Some €18.28bn was collected in income tax - 1.4pc lower than anticipated for the period to date - while €13.22bn was brought in via Vat. Stock image
Some €18.28bn was collected in income tax - 1.4pc lower than anticipated for the period to date - while €13.22bn was brought in via Vat. Stock image
Colm Kelpie

Colm Kelpie

Tax receipts for the year are on target, with €47.29bn collected into the State's coffers at the end of November.

That's 0.4pc, or €192m ahead of where the Department of Finance expected for this time of the year, according to the latest Exchequer Returns.

November is a key month for tax receipts.

The two main tax headings, income tax and Vat, are below target but are higher year-on-year.

Some €18.28bn was collected in income tax - 1.4pc lower than anticipated for the period to date - while €13.22bn was brought in via Vat.

Corporation tax receipts are €396m, or 5.5pc, higher than expected.

An exchequer surplus of €4.596bn was recorded to the end of November. This compares to a surplus of €1,521bn in the same period last year.

This year-on-year improvement of is primarily due to the recent sale of over 28pc of the State's shareholding in AIB, the Department of Finance said.

Total net voted expenditure at €40.665bn was 1.9pc or €788m below target, but up 5pc or €1.930bn in year-on-year terms. Non-voted expenditure is down year-on-year by 13.3pc or €1.379bn.

"This is mainly due to the absence of a requirement in the year-to-date for any short-term cash flow loans to the Social Insurance Fund and reduced debt servicing costs," the Department said.

Seamus Coffey, chairman of the Fiscal Advisory Council, tweeted that December tax returns are volatile but that if monthly profiles are met, then the corporation tax total for the year will exceed €8bn and be 16pc of exchequer tax receipts.

In other tax heads, excise duties closed the month €67m above profile.

The Department said November is the key month in terms of CAT receipts, with approximately 43pc of total receipts profiled for collection.

Receipts of €188m were collected, which is on target for the month.

Stamp Duty receipts of €85m were collected, which represents a €32m shortfall against the monthly target.

Local Property Tax of €49m was collected in November, representing a monthly surplus of €2m.

Irish Independent

Business Newsletter

Read the leading stories from the world of Business.

Also in Business