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Friday 23 February 2018

Tax take to April ahead of target at €10.8bn - Finance reporters

THE tax take in the four months to end April was €10.8bn, or 7.6pc ahead of target, new Exchequer Return figures show.

Income tax was €160m-higher-than-expected while VAT and corporation tax also improved with the Government on track to reach its end of year targets, according to the Department of Finance.

Although below target in the non-due-month of April, VAT was €47m or 1.4pc ahead of target cumulatively after the first four months of the year.

Excise duties recovered a little in April and recorded a minor surplus in the month.

The Exchequer deficit stood at €7.1bn at the end of the month compared with €9.9bn at the same time last year due mainly to the non-payment of just over €3bn in promissory note, or IOU, Anglo Irish Bank debt.

Speaking today, Minister for Finance Michael Noonan stood over his earlier comments that a ‘no’ vote in the fiscal treaty referendum would lead to a tougher budget this year .

“That was a considered statement,” he told reporters in Brussels.

He added that he was not trying scare people but telling the truth about the situation.

Mr Noonan said a no vote would lead to less confidence and could hit investment into the country both by multinationals and indigenous firms.

This in turn could lead to lower growth rates than are being expected for next year at 2.2pc.

Mr Noonan explained that if growth was lower then there was a possibility that higher tax rates would have to be considered.

He also had a go at Sinn Fein’s stance that a “yes” vote would be one for more austerity.

“The contrary is the true position,” he added.

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