DUBLIN: Ireland collected 6.1 percent more tax in January than a year ago, driven by a surge in value-added tax receipts submitted for November and December, the finance ministry said on Thursday. Ireland’s economy has been the best performing in the European Union for the past three years, swelling the tax take in the process even as the government gradually unwinds some of the tax increases introduced during the financial crisis.
The finance ministry has forecast that tax revenues will grow by 5.2 percent for 2017 and that Ireland’s budget will fall to 0.4 percent of gross domestic product as it moves towards its first balanced budget in a decade. Income tax returns and VAT receipts accounted for over 80 percent of all revenue collected in January, with VAT up 10.2 percent, or 214 million euros, year-on-year and income tax 0.5 percent ahead of where it stood a year ago. The exchequer recorded a 1.5 billion-euro surplus in January, representing a 270 million-euro improvement on the year, which the finance ministry said was primarily due to the increased tax take.
