Strong tax returns point to the Government meeting its budget targets this year despite pressures from welfare and health costs.
Figures for the end of April show a better than expected intake in income tax, VAT as well as corporation tax. But the budget deficit still stood at over €7bn at the end of month.
Overall, tax revenues for the first four months this year amounted to €10.8bn, an increase of just under €1.2bn (12.4%) on last year. The Government had forecast an income of €10.43bn for the period.
Figures released by the Department of Finance show that tax returns to the end of April were €370m (3.5%) ahead of expectation. This came from increases in VAT revenues, helped by a rise in the budget, as well as a rise in income tax.
The budget deficit was down from €9.9bn last year thanks in part to the Government deferring the €3.06bn payment on Anglo’s promissory note.
Department sources say that if tax returns are equally as strong for May that it will give an even more “robust” indication of meeting the €35bn intake target.
However, spending was also up by €314m or 2.2% at the end of April because of expenditure in the Departments of Social Protection and Health.
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