€378m corporate tax revenue bounty

€378m corporate tax revenue bounty
Finance Minister Paschal Donohoe

By Eamon Quinn

Corporation tax revenues continue to flow strongly to bring in €378m more than was anticipated so far this year, while Vat receipts helped make up a shortfall in income tax revenues, the exchequer returns for July show.

The figures will bolster confidence the Government will easily meet its budget day targets for 2018 while the momentum of the economy may provide additional room for manoeuvre for Finance Minister Paschal Donohoe in his 2019 budget, in October.

Overall, Government revenues of almost €4.75bn in the month were up 6.3% from July 2017 and reached almost €29.69bn for the first seven months, to meet the profile targets set by officials.

However, corporation tax continued to play a starring role. 

At €150m, revenues from company taxes brought in €43m, or 41%, more than was anticipated in the month. 

For the first seven months, the Government has collected €4.18bn in corporate revenues, an increase of 16% from 2017 and €378m, or almost 10%, more than it had anticipated. 

For all of 2017, the Government collected €8.2bn in corporation tax receipts, an increase of €850m, or 11.6%, from 2016.

The July figures also show that Vat, in a month for Vat payments, brought in €2.09bn, or 4% more than was anticipated. 

And at almost €9.19bn, Vat receipts were on target over the seven months. 

Income tax receipts, which include receipts from the USC tax, brought in €1.7bn in July — some 4.4% less than anticipated. 

Income tax receipts to date, at almost €11.45bn, met the target set by officials.

Tax partner Peter Vale at Grant Thornton said: “While the figures are well ahead of 2017, you would expect income tax figures to have comfortably breached forecasts, which has not yet happened.”

At €525m in July, excise duties continued to show the effects of tobacco firms stocking for changes to plain packaging for cigarettes. 

Over the full seven months, revenues from the duties were down 9.8% from a year earlier.

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