Housing boom increases Exchequer tax take by €2.5bn

Tax revenues for the first seven months of the year rose 12 per cent, according to the latest Exchequer figures from the Department…

Tax revenues for the first seven months of the year rose 12 per cent, according to the latest Exchequer figures from the Department of Finance.

The figures show tax receipts totalled €23.3 billion at the end of July - up €2.5 billion on the same period last year.

This indicates the Government's tax take by the end of the year is likely to be more than €2 billion ahead of Budget projections.

Revenue from stamp duty rose 43 per cent while revenue from capital gains tax increased by 15 per cent.

READ MORE

Fine Gael warned this evening that the ongoing housing boom is creating a imbalance in the economy.

Finance spokesman Richard Bruton said the figures mask weaknesses in the economy.

"Our extraordinary dependency on the housing boom is worrying. Our exporters are losing their market share and economists are forecasting a slowdown in growth, which adds to the fragility of our current prosperity," Mr Bruton said.

Despite a recent insistence by both the Taoiseach and the Minister of Finance that the Government would not produce a pre-election spending spree at the next Budget, Mr Bruton warned there could be a "temptation".

"It is high time we see a new approach to public expenditure. The Government must aim to create a framework that will offer greater stability to the economy, and not accentuate an unbalanced situation," Mr Bruton said.