Irish Tax Revenues Falling Short This Year

by Jason Gorringe, Tax-News.com, London

04 July 2003

Tax data for the first six months of 2003 has been published by the Irish Finance Department that shows a 344m euros shortfall in the public finances, which contrasts sharply with a 507m euros surplus at the same time last year.

In total, tax revenue fell 340m euros below the government's target, and this could grow to a 500m euro shortfall by the end of the year according to the Finance Department's own estimates. Income tax receipts were down 7% or 216m euros on last year, although most other tax revenues were up on 2002, including stamp duty revenues, which were up 18% on official estimates.

The deficit is expected to widen next year due to weak economic indicators, the Irish Business and Employers Confederation has warned: 'It is therefore imperative that Government continues to resist current spending pressures to keep the public finances in order without resorting to damaging tax hikes. Tax increases would further damage competitiveness and add to inflation,' the body observed, according to a report from RTE News.

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