Tax revenues in the first seven months of the year came in almost €900 million ahead of target as a surge in corporation tax payments delivered a fillip to the public finances.
Figures released this afternoon by the Department of Finance point to a budget deficit of €648 million between January and July, compared with a €5.18 billion deficit in the same period last year. On a like-for-like basis, excluding once-off transactions, the deficit comes in around €2.6 billion in the period.
Tax revenue reached €24.54 billion in the first seven months of 2015, €2.16 billion higher than in 2014.
The data reflects tight control over spending, with €22.92 billion net voted expenditure coming in €352 million or 1.4 per cent below profile and €65 million ahead of the same period in 2014.
The latest exchequer returns are in line with forecasts, suggesting full year tax receipts will overshoot budget day targets by some €1.4 billion.
Payments were €800 million above profile at the end of June and the new batch of figures indicate they came in €893 million above profile by end July, a gain in the month of some €93 million.
Corporation tax
By far the biggest excess over profile was in corporation tax returns , which stood at €2.9 billion at end July and were €778 million ahead of the same period in 2014 and €653 million above the budget daytarget.
Total receipts under the heading in July, at €3.92 billion, were almost exactly the same as in the same month last year.
While payments in July 2015 were €6 million higher, the Department said €285 million in corporation tax receipts were delayed from June to July last year for technical reasons. “Therefore ... tax receipts in July were actually up €291 million or 8 per cent when compared to the same month last year,” the Department said.
The Government collected €9.76 billion in income tax in the first seven months of the year, €21 million above profile and up €517 million on a year-on-year basis. “For the month of July, income tax was €33 million or 2.2 per cent below profile, which is wholly attributable to weak DIRT receipts on the back of low interest rates,” said the Department.
VAT receipts reached €7.67 billion in the period to end July, up €560 million year-on-year and above profile by €79 million. “VAT receipts for July, which are reflective of the May / June trading period, were €43 million (2.6 per cent) above profile,” the Department said .
