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Dublin: 5 °C Friday 24 May, 2013

Exchequer returns: Government’s tax take 0.5 per cent below target

The Department of Finance has released the last exchequer returns before tomorrow’s Budget with income tax take for November 12 per cent below target.

Image: Niall Carson/PA Archive/Press Association Images

THE FINAL EXCHEQUER returns before tomorrow’s Budget have shown that Ireland’s tax take for the year so far is €171 million or 0.5 per cent behind target.

The total tax take to the end of November is €33.8 billion with €40.6 billion of total expenditure which was €249 million or 0.6 per cent above target.

The exchequer deficit at the end of the month is €13 billion compared to €21.4 billion for the same period last year.

Three of the big four taxes – income tax, corporation tax, and excise duties – have come in below target with the worst affected being income tax which is €231 million or 1.6 per cent behind target for the year by the end of November.

This is following a €300 million or 12 per cent shortfall for the month of November. The lower than expected income tax take has been attributed to lower than expected returns from the self-employed.

Corporation tax receipts are also behind  target at €21 million or 0.5 per cent with receipts in November – the biggest month of the year for corporation tax collection – €46 million below target.

The Department of Finance did point out that this was almost 11 per cent above the collection total for the same month last year.

Excise duties also came in below target for November continuing the trend from the middle of the year and receipts are €179 million or 4.2 per cent behind target for the year.

There was good news for Value Added Tax (VAT) which is €180 million or 1.8 per cent ahead of target following a €74 million surplus in November.

The Department pointed out that VAT receipts are 4.4 per cent ahead of the same period last year with the budget for this year targeting a 2.6 increase on last year.

Stamp duties and capital gains tax are ahead of expectations – 4.8 per cent and 7.1 per cent respectively – the Department said, but capital acquisitions tax is €23 million or 8 per cent below target.

Health spending was €321 million or 2.8 per cent over target with spending at the Department of Social Protection €610 million or 5 per cent over target – these account for the two biggest spending areas in the overall budget.

Total net cumulative spending to the end of November is 0.6 per cent over target at €40.6 billion – €249 million over what was targeted.

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Comments (35 Comments)

  • After a fall in tax take we can summarize tomorrows budget as:
    The taxation beatings will continue until economic morale improves.

    Reply
    • Thank the stupid people who elected Fine Gael. They are the same as Fianna Fail.

      Reply
    • The rich need to be taxed. Kenny’s budget is regressive.

      Reply
    • Here are eight principles to guide you in the coming showdown over the deficit:

      ONE: HOLD YOUR GROUND. The wealthy have to pay their fair share of taxes. That’s what the next election will be all about. It’s only fair they pay more. They’re taking home record share of national income and wealth, and have lowest effective tax rate in living memory.

      TWO: NO DEAL IS BETTER THAN A BAD DEAL. You’re in a strong bargaining position. No party should sell themselves the way Labor did in 2011. Which isn’t such a bad thing.

      THREE: MAKE SINN FEIN VOTE ON EXTENDING THE TAX CUTS JUST FOR THE MIDDLE CLASS. After all the FF tax breaks expire, have SF vote on an extending the tax cut just for the middle-class. FG have refused and tried to hold those tax cuts hostage to tax cuts for the wealthy, it will show whose side FG are on. They’ll pay the price in 2016.

      FOUR: DEMAND HIGHER TAX RATES ON WEALTHY, NOT JUST LIMITS ON DEDUCTIONS. Don’t fall for Fianna Fail offers to limit some tax deductions on the wealthy. Demand we go back to higher tax rates on the wealthy and eliminate their unfair tax loopholes, so they truly start paying their fair share.

      FIVE: DON’T CUT SAFETY NETS. Don’t sacrifice Social Security, or programs for the poor. Irish depend on these safety nets and can’t afford any benefit cuts.

      SIX: DON’T CUT INVESTMENTS IN OUR FUTURE PRODUCTIVITY. Education, basic R&D, and infrastructure aren’t spending; they’re investments in our future prosperity. If the return on these investments is greater than the cost, they ought to be made, period.

      SEVEN: CUT SPENDING ON CORPORATE WELFARE. You want to cut, cut spending on the promissory note — which now exceeds 32 per cent of GDP. And cut corporate welfare — support to group companies, oil and gas, Big Pharma, big insurance and Banks.

      EIGHT: PUT JOBS BEFORE DEFICIT REDUCTION. Finally, Don’t cut the budget deficit as long as unemployment remains high. Otherwise you’ll cause the economy to contract, making the deficit even larger in proportion. That’s the austerity trap Europe has fallen into. We need to create Irish prosperity, not European austerity.

      Remember: Jobs come first. Refreshed copy.

      Reply
  • Just how many people have emigrated this year and how many more will consider it after tomorrow’s budget?

    Reply
  • CPT up 11% [over 2011] but €46 million below target.who the hell set the target? P45?

    Reply
  • Keep up missing targets has any of the last five budgets actually calculated the damage this is having on the country can we please in the next election get rid of the higher civil service and politicians who have had any hand or part in the destruction of our country with out pensions please

    Reply
    • The problem is this:

      1. Ireland keeps meeting its fiscal targets: this reduces any chance of politicians/rich/civil service cuts.
      2. The Irish voters would re-elect FG/FF: Gravy train continues.

      and so on..

      Reply
  • Shock horror, govt and EU cut the living daylights out of everything and lob taxes on everything bar air and the tax take is behind? Well I never, there was me thinking that when we took another €3,000,000,000 out of the economy whilst repaying debt that we don’t owe was going to improve our fortunes!

    Reply
    • Haven’t you heard about charging for air? Apparently tomorrow the government are going to announce a massive job creation programme, funded by the tax payer, they will build a glass dome over the whole country with an air ventilation system and guess what, they will charge you the tax payer for the use of the air, not a lot just €100 registration charge, then when they have you registered they will charge what they like…. Sound familiar???

      Reply
    • Not so long ago, I recall hearing “vote yes for stability”. The sad thing is the stupid people actually bought into Kenny’s promises.

      Reply
  • Isn’t that amazing? So they setup taxation to beat down the working classes, to decimate the poor; resulting in businesses being demolished to a factor of 5x what it was before, and there is lower returns than expected DESPITE ripping the life out of most families.

    Wow lads, that’s .. truly amazing stuff.

    Reply
  • We need a PAYE workers party, party for the working person on the street. Enough with parish pump regional cronyism.

    I dont think we have options in the next GE something has to give and the gravy train and career politicians have to go.

    Reply
  • Don’t worry they will get it on Wednesday !

    Reply
    • Not off me, they wont!

      All I know is first you’ve got to get mad. You’ve got to say, “I’m a human being. God Dammit, my life has value.”

      So, I want you to get up now. I want all of you to get up out of your chairs. I want you to get up right now and go to the window, open it, and stick your head out, and yell, “I’m as mad as hell, and I’m not going to take this anymore!” I want you to get up right now. Get up. Go to your windows, open your windows, and stick your head out, and yell, “I’m as mad as hell and I’m not going to take this anymore!”

      Things have got to change my friends. You’ve got to get mad!! You’ve got to say, “I’m as mad as hell and I’m not going to take this anymore!”

      Reply
  • As this country’s electorate, we hold all the Aces. All self employed and business wonder should withhold VAT and Income Tax until we’re listened to. All PAYE workers should request that their employers withhold paying PRSI and PAYE until they are listened to. When the Govt. runs out of money they’ll listen…

    Reply
  • they are expecting a 2.6% rise in the Vat take. Yet they rose the vat level last year by 9.5% so they are fully aware that this move would have and has supressed economic activity, coat jobs and in the long run slowed our recovery down?? Seriously what schools did these guys go to??

    Reply
  • WelL, I doubt that anyone ever went broke betting on the stupidity of the Fine Gael party.

    Reply
  • alan 04/12/12 #

    And then the stupid people riot in the ballot boxes again and return Fine Fail who because we’ve scrapped back into the markets go on another spending spree and the Irish Wheel of stupidity keeps turning

    Reply
    • Most young people would think twice before voting FF or FG.

      Either we want more of the same or something different.

      The middle class would benefit if we made the change to the alternative parties on the left. The French middle class made a similar move and appear to be benefiting greatly from this.

      Reply
  • Electing conservatives causes economic collapse.

    Reply
    • Alternating power between the status quo/change nothing obsessives of FG or the corrupt criminals of FF has ensured that this country goes bankrupt every 20 years and there are more Irish living abroad than living here, one of the least densely populated countries in the world.

      and still 50% of the electorate consider the 2 of them fit for election, the 2 parties with the worst economic records in the western world.

      Reply
    • Hear that, Gilmore? You’re a conservative.

      Joking aside, I wonder where exactly Mr. Joe sees ‘conservatives’. The last time I checked the only ideological difference between FF and FG was that FF was a tad more corrupt. Other than that, no difference. Same circus different clowns.

      Reply
    • 1961, John Cowperthwaite (London government appointed Scottish Civil Servant) began the process of transforming the Asian island of Hong Kong from one of the largest refugee camps in the world to one the most economically dynamic and affluent enclaves on the planet.
      Hong Kong was the original tiger economy and it’s transformation was so impressive that other nations in the region began to imitate it’s economic model. This resulted in a litter of tiger economies.
      Hong Kong’s economy grew for 30 consecutive years. Within a few years of launching his reforms the colony was able to finance a massive public housing programme. More recently Hong Kong, literally, built a new international airport in the sea.
      By the 1970’s China under leader Deng Zhong began reversing the collectivist policies that had resulted in depravations and famine over decades to also imitate Hong Kong’s rapid economic growth.
      In 1991, Russia (following an IMF bailout) also began adopting Cowperthwaite’s ideas. Progressive taxation was abandoned in favour of a flat 15% tax rate. Within one year tax revenues had swelled by 25%.
      More recently, Latvia has opted for Cowperthwaite-like reforms.
      Like Ireland, Latvia found itself in trouble at the onset of the the current crisis. It’s banking system too disintegrated in the wake of Lehman’s collapse. Unlike ireland, the Latvian government did not foist the cost of resolving the crisis onto it’s taxpayers. Instead dramatically cutting government spending ( public sector pay by 30% in one year). Today their unemployment rate is falling rapidly (below 11%) and their economy grew by over 5% last year.

      Reply
  • The day before the budget this information is released they must think we are idiots its below forcast well the axe should fall on the forcaster not the people

    Reply
  • The dat before the budget this information is released they must think we are idiots its below forcast well the axe should fall on the forcaster notthe people

    Reply

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