DUBLIN: Ireland (Other OTC: IRLD – news) collected 2.4 percent less tax than expected in the first four months of the year, the finance ministry said on Wednesday, the second shortfall in two months and a threat to the government’s fiscal plans for 2018.
Ireland’s economy has been the best performing in the European Union for the past three years, swelling the tax take in the process. The finance ministry has forecast that tax revenues will grow by 5.2 percent in 2017. However, revenues were only up just 0.5 percent year-on-year by the end of April because income and corporate taxes were lower than expected, although the ministry said once-off payments flattered income tax receipts last April.
Collection of corporate tax, the bulk of which is paid in later months and was responsible for much of the overall over-performance of the past two years, was 223 million euros below target at the end of April. On the other hand, VAT returns were up 14.5 percent year-on-year and 5.7 percent better than expected. With (Other OTC: WWTH – news) expenditure 1.8 percent less than planned, the exchequer posted a 2.54 billion-euro deficit at the end of April, compared with one of 1.06 billion at the same point a year ago. Ireland aims to cut the deficit to 0.4 percent of gross domestic product this year as it moves towards its first balanced budget in a decade.
