Tuesday, December 5, 2017
Irish tax revenues have finally surpassed the Government's target, thanks in part to higher than expected corporate tax receipts.
At EUR47.3bn (USD56.1bn), cumulative tax revenues for the first 11 months of 2017 were 0.4 percent (EUR192m) ahead of target, and up 5.8 percent in year-on-year terms.
According to the Finance Department's latest Fiscal Monitor, November is the key month in terms of tax receipts, with approximately 16 percent of total tax receipts profiled for collection. Receipts closed the month 2.3 percent ahead of target, with the Department attributing the surplus to "a combination of very strong corporation tax receipts and strong performances in relation to VAT and excise duty receipts."
Corporation tax receipts were 8.8 percent (EUR181m) ahead of target for the month of November. Cumulatively, receipts at the end of the first eleven months of 2017 were up 5.5 percent on target and 8.4 percent on the same period in 2016. Cumulative receipts were EUR7.7bn.
November is the final "due" month for VAT, and receipts for the month were 4.3 percent above target. Cumulatively, receipts were down just 0.3 percent on target for the January-November period.
Individual income tax receipts were 3.1 percent ahead of target for the month of November. However, on a cumulative basis, receipts remained below target, at 1.4 percent (EUR251m).
The figures were welcomed by business group Ibec. Head of Tax and Fiscal Policy Gerard Brady said that they "show that corporation tax receipts are now on a run-rate to beat EUR8bn this year."
He added that "corporation tax revenue has now doubled since 2014 with receipts now almost equivalent to the total education Budget of the State."