Irish Economy: Tax revenues were €893m above target in the year to July with €653m coming from corporation tax, according to the latest Exchequer returns.
The Department of Finance had a deficit of €648m compared to a deficit of €5.18bn in the same period last year. The improvement in the Exchequer balance is driven by increased tax and non-tax receipts and a number of one off transactions. Without the one off transactions the improvement in the deficit would be c.€2.6bn.
Tax revenue of €24.5bn was collected to end-July 2015. This represents a year-on-year increase of €2.16bn (9.7%) and is €893m (3.8%) above target. Income tax receipts of €9.76bn were collected to end-July 2015, a year-on-year increase of €517m or 5.6%, and is slightly above target (€21m or 0.2%). For the month of July, income tax was €33m or 2.2% below target, which is wholly attributable to weak DIRT receipts on the back of low interest rates.
The first seven months of the year saw VAT receipts of €7.67bn collected which represents an increase of €560m or 7.9%, when compared to the corresponding period last year and is slightly above target (€79m or 1.0%). VAT receipts for July, which are reflective of the May / June trading period, were €43m (2.6%) above target.
Corporation tax receipts to end-July were €2.90bn — a €778m (36.7%) increase when compared to the same period last year and some €653m more than target.
Non-tax revenues, at €2.45bn were up €304m (28.1%) in year-on-year terms. The primary reason for this is the increase in the surplus income from the Central Bank of c. €497m offsetting a decrease in dividends and fees received under the ELG (bank guarantee) scheme.
Overall net voted expenditure for end-July 2015, at €24.23bn, was 1.4% or €352m below target and €65m (0.3%) higher in year-on-year terms.
Interest expenditure at end-July 2015, at €4,322m was €261m 5.7% below target.
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