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Exchequer Returns

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.

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.

Budget 2013: Budget Eve: Sentiment of the Day

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