DUBLIN: Irish tax revenues were up 1.5 percent on target for the first nine months of the year, according to the final Exchequer figures to be released ahead of next week’s Budget.
At EUR33.4bn (USD37.5bn), tax revenue for the first nine months of 2016 was up 5.7 percent year-on-year and 1.5 percent on target. The budgetary deficit for January-September 2016 was EUR25m, down EUR79m on the same period in 2015. Total net government expenditure was 1.5 percent below target but two percent higher in year-on-year terms.
Finance Minister Michael Noonan commented: “The taxes collected and expenditure on vital public services show that the Government’s prudent planning of our resources is working well. Each of the main taxes are performing as expected. These improved Exchequer results together with today’s revised unemployment figure of 7.9 percent shows how Ireland is growing in resilience. We should guard this improvement and be prepared for external shocks so that we can all continue to enjoy the benefits of our recent hard work.”
The improved revenue figures continue to be driven by a strong performance by corporation tax. On a cumulative basis, corporation tax receipts are now 18.3 percent above target, at EUR4.2bn.
Income tax, on the other hand, has struggled to keep pace. For the January-September 2016 period, income tax was down 0.9 percent on target, and there was also a 1.1 percent shortfall against the monthly target for September. It is nonetheless cumulatively up 4.1 percent in year-on-year terms.
Value-added tax (VAT) failed to meet targets. For the year-to-date, receipts are 2.7 percent below target, but up 5.1 percent on an annual basis.
