Tax receipts 'in line' with targets

Tax receipts for the year to the end of April were down 10

Tax receipts for the year to the end of April were down 10.8 per cent on last year, according to exchequer returns for the first four months of the year.

The €9 billion in taxes collected was broadly in line with the targeted amount for the period.

The year-on-year decline of 10.8 per cent compares with a 15 per cent year-on-year fall at the end of March.

The exchequer deficit at the end of the period was €6.9 billion and compares with a deficit of €7.3 billion at the same point last year.

READ MORE

The Department of Finance, in a short commentary issued with the figures, said the year-on-year reduction in the size of the deficit “continues to point to the validity of the budget day targets.”

It forecast tax revenues for this year would be €31 billion, which would a drop of 6 per cent on last year’s revenues.

Voted expenditure to the end of April was €14.36 billion; 8.1 per cent below the figure at the same point last year. The department said the reduction was due to the expenditure control decisions taken by the Government and, to a lesser extent, timing issues.

Spending is down for all Government departments apart from Social and Family Affairs, Enterprise, Trade and Employment, and Communications, Energy and Natural Resources.

The breakdown of the tax receipts shows income tax down 9 per cent year-on-year but 2.4 per cent down compared to target.

Vat is down 10.8 per cent year-on-year but up 0.7 per cent compared to target.

Corporation tax is down 42 per cent year-on-year but up 11.2 per cent on target. Stamp duty is down 23.6 per cent year-on-year and 20.4 per cent down from target.

Capital gains tax is down 38.8 per cent year-on-year, but up 44 per cent when compared to target.

Interest payments on the national debt were €1.8 billion in the year to the end of April, compared with €1.5 billion in the same period last year.

Fine Gael deputy leader and finance spokesman Richard Bruton said the latest figures show the national debt is growing by €40,000 every minute.

"An unexpected windfall in corporation tax receipts, which is unlikely to last, has created an impression of stabilisation. This could well prove to be a false dawn and we cannot afford to be complacent. We have seen many similar blips before in the public finances," he said.

"The only way to get the public finances permanently back on track, and to secure confidence in the international markets, will be with an Irish government which tackles the problems facing the real economy. This can only be achieved by improving Ireland's competitiveness and getting people
back to work," he added.

Elsewhere, Labout Party finance spokeswoman Joan Burton said the latest figures highlight the frailty of the economy.

While total revenues are in line with profile, the total tax take is down 11 per cent on the same period in 2009, which was itself down 24 per cent on the year before. Revenues fell off a cliff in early 2009, and these figures are lower still," she said.

"The economy is limping along, and there is precious little sign in these figures of a meaningful recovery that will deliver jobs and higher living standards for families struggling to deal with unemployment and wage cuts," Ms Burton added.