Exchequer returns for July were €98m behind target, according to the Department of Finance, largely due to a shortfall in VAT take during the month.

Just under €4.09 billion was taken in by the State during the month - 2.3% lower than the amount forecast in Budget 2016.

The amount received in VAT was €61m (3.3%) below target, while the Corporation Tax take had a €23m (16.5%) shortfall. Excise was also significantly below target, coming in €25m (5%) below what was anticipated.

Despite the monthly shortfall Exchequer returns are still significantly ahead of target for the first seven months of the year, however, up €644m (2.5%) on what was expected at the start of 2016.

Of the €26.61 billion taken in by the State between January and July, €10.29 billion was in Income Tax - broadly in line with budgetary expectations.

Almost €3.3 billion has been received in Corporation Tax - €482m (17.2%) more than expected - while Excise is €376m (11.5%) ahead of target at €3.27 billion.

However VAT is offsetting some of that surplus, with that tax bracket sitting €292m (3.5%) below target for the first seven months of the year.

Stamp Duty and Customs are also coming in below expectations for the year so far, down €35m (5.7%) and €37m (18.1%) respectively, while Capital Gains Tax and Capital Acquisitions Tax are up by €37m (31.6%) and €39m (50.7%) respectively.

Meanwhile the State had taken in €315m in Local Property Tax between January and July - €19m (6.3%) ahead of target but down on the amount received in the same period of 2015.

"It is too early to attribute the weakness in July to any negative impact from Brexit," said Davy's chief economist Conall MacCoille. 

"The recent upward revisions to Irish GDP will also help the government to meet its targets, so we still expect that the deficit will fall close to 0.5% of GDP in 2016."