Tax Receipts Just About on Target
08 May 2013
Posted by: Author: Charteredaccountants.ie
Source: Charteredaccountants.ie (Ireland)
Tax receipts to end-April at €10.94 billion are broadly on profile and €145 million ahead of the same period in 2012, according to Exchequer receipts published last week. It is clear that Irish citizens and businesses are just about managing to pay the taxes being levied upon them, with little room for manoeuvre.
For the month of April, tax revenues amounted to €2,129 million, an increase of €51 million (2.4%) on the same month in 2012. In the month of April, €21 million was collected in Local Property Tax (LPT) and the total LPT recorded is €22 million. Income tax, corporation tax and VAT receipts were all behind target for the month.
A total of €22 million has been collected in LPT for the first four months of the year. While the LPT return is due for filing this month, payment of the LPT liability is due in the month of July. LPT receipts collected to end-April indicate that some homeowners may have paid their liability at the time of filing their return.
Income tax on a cumulative basis was €5,044 million, up €62 million (1.3%) on the same period last year and €58 million (1.1%) below target. According to Exchequer Statements the shortfall in income tax was primarily due to lower than expected DIRT receipts which may be reflective of the reduction in retail interest rates.
Corporation tax decreased €88 million (17.2%) year-on-year to end April and was €121 million (39.9%) above profile. Supporting Department of Finance analysis states that underlying year-on-year growth was €23 million (8.8%) on an adjusted basis.
VAT recorded a shortfall against profile for the month of April of €34 million. For the first four months of the year, VAT is down €105 million (2.9%) against profile. Not only that, total VAT receipts for the first four months of 2013 are lower than from the first four months of 2012. As the 2012 figures are based in part on a VAT rate of 21%, this shows a real decline in consumer activity.
The analysis of tax receipts to end-April are published on the Department of Finance website.