Growth in Government revenue stayed strong into August, Exchequer figures published by the Department of Finance revealed yesterday. But they continue to be driven by the housing market.
Speaking at the Fianna Fáil parliamentary party conference in Westport yesterday, Minister for Finance Brian Cowen welcomed the figures and said he was not concerned by the growing influence of property-related taxes on revenue strength.
In the first eight months of the year, the Government received €25.8 billion in tax revenue, a rise of 12.7 per cent on the same period in 2005 and €1.5 billion above Government expectations.
But the rate of growth in categories of tax related to the property market - so-called capital taxes - continued to outperform average taxation.
Stamp duty receipts so far this year amounted to €2.35 billion, 45.7 per cent ahead of the figure for the same period in 2005 and exceeding budget expectations by €575 million.
Capital gains tax has yielded €973.2 million in the first eight months of the year, up 57.4 per cent on the year-ago period, while capital acquisitions tax receipts rose 45.7 per cent to €228.2 million, both categories exceeding expectations by €300 million.
By contrast, income tax receipts rose by only 4.3 per cent in the period, reaching €7.05 billion.
VAT receipts were 11.7 per cent stronger at €8.81 billion, up 11.7 per cent on a year previously.
Excise duties rose to €3.72 billion, up 9 per cent. Receipts for income taxes, VAT and excise duties - which together account for 80 per cent of total taxes - were broadly in line with Government expectations.
Over the same period, corporation taxes rose 11.1 per cent to €2.52 billion, some €345 million ahead of target.
On the spending side, the Government remains behind target on both capital projects and day-to-day expenditure.
Overall, the Exchequer had a surplus of €203 million at the end of August, compared to a deficit at the same time last year of €629 million.
Mr Cowen said that the growing importance of capital taxation reflected a desire by the Government to change the structure of taxation away from dependence on income tax.
"I'm proud of the fact that I'm getting three times more from capital taxes than the Labour Party minister who was there 10 years ago," he said yesterday.
Mr Cowen said that the latest figures would help the Government to keep the budgetary position "close to balance or in surplus".
He also ruled out any unilateral cut in excise duties to counteract the impact of increases in energy prices. "EU finance ministers have agreed that we won't be engaging in that on a national basis," he said.
Discussion on energy policy was an important feature of yesterday's conference, which was addressed by international energy expert Dr Dieter Helm.
