Tax revenues in the first five months of the year were 16.7 per cent higher than in the same period of 2005, the Department of Finance revealed yesterday. Marc Coleman reports.
The latest figures suggest that the tax take rebounded strongly in May, after a disappointing April performance. Minister for Finance Brian
Cowen welcomed the figures yesterday,but Opposition figures questioned whether recent tax buoyancy could be sustained in the
future.
The Government received just under €17 billion in tax revenues in the first five months of the year, latest Exchequer returns have revealed.
The housing market continues to strongly influence the Government's financial position, the figuresshow. Stamp duties rose on an annualised basis by 38 per cent in May (compared with May 2005), and by 39 per cent in the first five months of 2006.
Capital gains taxes rose on an annualised basis by 55 per cent in the five-month period, while capital acquisition taxes were up 33 per cent.
The Government has targeted a full-year Exchequer borrowing requirement of € 2.9 billion which assumed tax revenues of €16.1 billion in the first five months of this year. Revenues are now 5.5 per cent ahead of target.
Spending in the period was 3.5 per cent below the cumulative monthly target, but 7.7 per cent ahead of the same period last year. One analyst predicted the Government would be able to spend €1 billion more ahead of the election.
Mr Cowen said the figures "demonstrate the continued strength of both the economy and our fiscal position". The Opposition however said the tax performance was overly reliant on short-term buoyancy.