Tax revenues ahead of expectations

Tax revenues continued to out-perform expectations last month, according to latest figures from the Department of Finance.

The Exchequer has collected €10.8bn to the end of April, a 12.4% increase compared to the same time last year, €370m more than Budget projections.

Most of the money is from higher income tax and better-than-expected corporation tax returns, though repayments to companies could offset that in the months ahead.

Despite a slight shortfall last month, VAT also continues to out-perform expectations, despite the rise to 23%.

The exchequer balance was €7.1bn, down from €9.9bn in the first four months of 2011, although it has benefitted from alternative arrangements to pay down €3.1bn of promissory notes.