Tuesday, February 13, 2018
The Irish Government is targeting a seven percent increase in revenue over 2017's tax take.
The Finance Department has published its projected monthly taxation receipts for 2018. The total revenue forecast for 2018 is EUR54.2bn (USD66.4bn), seven percent higher than last year.
The "big four" tax heads – income tax, corporation tax, VAT, and excise duties – are projected to make up 90 percent of the tax mix.
Income tax receipts accounted for just over 40 percent of total tax revenue in 2017. For 2018, the Department is projecting income tax receipts of EUR21.4bn, seven percent higher than last year.
Corporation tax receipts are projected at EUR8.5bn, an increase of almost four percent year-on-year. VAT receipts are forecast at EUR14.1bn for 2018, an increase of just under six percent relative to last year.
Excise duties receipts are expected to total EUR5.8bn, a drop of just under two percent on 2017's tax take. The Department said that the decline reflects the frontloading of excise duty payments on tobacco, due to the introduction of plain packaging from September 2017.
From the beginning of 2018, the Local Property Tax is now paid directly into the local government fund, rather than being directed, in the first instance, to the Exchequer. By contrast, motor tax receipts are now paid directly into the Exchequer. The Department said that this classification change has no impact on the general government balance.