Government shortfall less than feared as tax returns up 4.4% to hit €27.1bn

TAX returns for the 11 months to the end of November show a far healthier position than many had forecast.

The tax shortfall will be substantially less than the €1.5bn projected by some forecasters just a few months back. Figures issued by the Department of Finance yesterday show that tax returns to the end of November totalled €27.1 billion, 4.4% ahead of the €26bn that rolled into governments coffers at the end of November 2001. Month-on-month, however, the figures show that close to €4bn extra flowed into the coffers in November. Of that, €1.5bn was in extra income tax and €600m from Corporation Profit Tax. As a result, the Government moves from a deficit of more than €439m to a surplus of 1bn at the end of last month. These figures are a major shot in the arm for the finance minister, who insisted his end-of-year figures would not be that far off the mark.

At this point, the income tax take at €8.3bn is just 3% down at the end of November, having been out by 9.3% at the end of October.