Tax take in line with expectations

Monday 04 July 2011 18.35
Finance Dept - Deficit stands at €10.8 billion
Finance Dept - Deficit stands at €10.8 billion

Exchequer returns for the first half of the year show the Government tax take and spending plans are in line with Budget forecasts.

The total tax receipts for the first six months of this year were €15.279 billion, 0.7% (€115m) below the Government’s target.

Minister For Finance Michael Noonan said he was happy the tax take was broadly in line with expectations.

Income tax receipts for June were up 21.5% compared to the same month last year, reflecting the impact of the Universal Social Charge.

Corporation tax is down 11.6% year-on-year however, and 7.6% (€116m) below expectations.

VAT receipts were also a drag on the figures, down 0.9% year-on-year, and performing 2.6% below expectations.

The deficit in the first six months of the year stands at €10.8 billion, compared to €8.9 billion in June 2010.

However, this year-on-year increase was primarily caused by the €3 billion which was put into Anglo Irish Bank, INBS and EBS.

Excluding these, the deficit fell by over €1 billion.