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First tax boost here in five years

TAX revenues in Ireland are growing for the first time since 2007, the latest Exchequer Returns show.

VAT and income tax had a strong performance - coming in at 3.2pc and close to 10pc above Budget forecasts respectively.

The Exchequer deficit stood at €4.26bn for the three months to the end of March compared to the €7.06bn recorded in the same period last year.

Overall returns were helped by the deferral of the €3.1bn due on the Anglo promissory notes.

Minister for Finance Michael Noonan said the figures illustrate the country is on target to reduce our general Government deficit to 8.6pc of GDP this year.

Corporation tax was 621pc above target at ¤469m, mainly because of overflows from the last reporting period.

"Taxes are up an estimated €758m or 10.1pc year-on-year and are €351m or 4.4pc ahead of profile in the first quarter of 2012," he said.