Figures Reveal Irish Tax Revenues Remain Below Target

by Jason Gorringe, Tax-News.com, London

07 August 2003

According to the latest figures from the Irish Exchequer, tax revenue remains firmly below the government's target, and recorded a shortfall of 200 million euros in the year to July.

Nevertheless, this is something of an improvement on the previous month's showing, which saw the tax take come in 340 million euros below the expected target for the year. This has been attributed to a decrease in revenues from income tax and VAT, according to reports. The Exchequer however, warns that the tax shortfall may end up being as much as 500 million below the budget projection for the year.

The total amount of tax revenue taken by the Exchequer in the first seven months of this year was 17.442 billion euros, the figures record, which is up 2% on the corresponding period last year. However, the budget has forecast an 8% rise in the total tax take for the whole year. It is thought that weak income tax receipts are largely to blame for this lacklustre performance. VAT income, on the other hand, has remained on target, whilst stamp duty revenue has jumped 50% on the back of a booming housing market.

Austin Hughes, an economist at IIB Bank, was moderately encouraged by the figures, which he said show a small jump in consumer spending. According to Mr Hughes, who was quoted by the Irish Times, the Republic's economy is "at worst flat and at best edging forward".

Recommended