Irish Tax Revenues Overshoot Targets

by Jason Gorringe, Tax-News.com, London

06 April 2006

Tax revenues, at EUR10,749 million, were EUR436 million ahead of the government's target at the end of March 2006, Ireland's Finance Minister Brian Cowen announced on Tuesday.

Year on year tax receipts were up 19.1 per cent compared to the projected increase of 14.3 per cent to end March 2006, Exchequer data published this weekend has shown.

Total current receipts in the first three months amounted to EUR10,865 million compared to receipts of EUR9,129 million for the same period in 2005.

“The results to the end of the first quarter confirm that the public finances remain very much on track," commented Mr Cowen.

"Tax revenues are ahead of profile, with capital taxes performing particularly well. I am confident that these figures support the view that the economy will grow by over 4.5 per cent this year, the strongest growth rate in the euro-area," he added.

The best performers are Capital Taxes (up EUR191m), Stamps (up EUR129m), Corporation Tax (up EUR127m) and Excise (up EUR55m), while VAT and Income Tax are EUR10m and EUR84m below targets respectively.

Capital receipts for the first three months amounted to EUR926 million compared with EUR259 million for the same period last year. The year-on-year variation is accounted for by an increase in Feoga receipts and receipts from the sale of state property. However, these were consistent with expectations.

An Exchequer surplus of EUR2,420 million was recorded in the first quarter of 2006. This compares to an Exchequer surplus of EUR880 million for the first quarter of 2005 and a budgeted deficit of EUR2,927 million for 2006 as a whole.

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