DUBLIN: Ireland collected 3.5 percent more tax than expected in the first four months of the year as corporate tax receipts remained strong, excise duties jumped and income tax returns got back on track, data showed on Wednesday.
Ireland has consistently taken in more tax than forecast over the past three years as its economy recovered from Europe’s financial crisis. It is expected to grow faster than any other economy in Europe for the third straight year in 2016.
Corporation tax, which surged to record levels last year, continued to drive the outperformance, increasing 20 percent year-on-year to come in 71 percent ahead of target.
Buoyed by strong car sales, excise duties grew 11 percent faster than expected. Income tax returns, which account for almost half of the total tax take and had fallen a surprising 3.4 percent below target in March, were back in line.
They were, however, assisted by one-off payments received during the month, Ireland’s finance department said. The other major tax, value added tax, fell 4 percent below target.
The country had a fiscal deficit of 1.1 billion euros at the end of April after government departments spent 0.7 percent less than expected. Ireland forecast last week that its deficit would fall to 1.1 percent of gross domestic product (GDP) by year end.
