Exchequer tax take up 16.7% in May

Tax revenues were up by 16.7 per cent at the end of May, Exchequer figures released this evening show.

Tax revenues were up by 16.7 per cent at the end of May, Exchequer figures released this evening show.

There was an Exchequer surplus of €1.84 billion, compared to a deficit of €142.5 million at the end of May last year.

Exchequer figures published by the Department of Finance reveal that corporation tax is up nearly 38 per cent on the same period in 2005, with a total take of €1.6 billion since the beginning of January.

Income tax is up by 9.5 per cent to €4.4 billion, while stamp duty is also up by 38.7 per cent, largely due to the property boom.

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In all, tax revenues are 5.5 per cent above the expected outturn for this period.

Capital receipts were also up, mainly due to the sale of state property to the value of €221 million.

The Minister for Finance Brian Cowen welcomed the figures, which he said demonstrated the continued strength of both the economy and our fiscal position.

He said the Exchequer surplus at the end of May was mainly due to higher than expected tax revenues and spending being about 3.4 per cent below profile.

Mr Cowen said he was glad to see that, after a relatively weak performance last year, corporation tax accounts for a significant part of the excess in tax revenues so far this year.

"However, despite the welcome recovery in the year-to-date of corporation tax receipts, I must strike a note of caution," he said.

"As over 60 per cent of corporation tax revenues are due in the final quarter, it is too early at this stage to make a judgement on how corporation tax revenues will perform for the year as a whole."

On expenditure, Mr Cowen said the Government continues to allocate "significant but sustainable resources to both current and capital expenditure".

"The end-May returns show that total voted expenditure is up €980 million, or almost 8 per cent, year on year."