Government tax revenues grew strongly in the first half of the year but were lower in the month of June, according to Exchequer returns data published yesterday, writes Marc Coleman, Economics Editor.
The figures, published by the Department of Finance, indicate the increasing dependency of Exchequer revenue on the property market for growth.
The Government collected €19.59 billion in taxes in the first six months of the year, compared with a Budget forecast of €18.61 billion, a difference of €980 million.
However, tax revenues in June were 2.9 per cent lower than a year previously at €2.62 billion. The decline was influenced by a heavy fall in corporation taxes, which were 26.6 per cent weaker over June 2005.
VAT receipts also fell year-on-year in June by 9 per cent. By contrast, capital gains taxes were 133 per cent higher in June than 12 months earlier and stamp duty receipts were up by 53 per cent.
Income tax receipts rose modestly by 5.6 per cent.
Over the first six months of 2006, however, Government tax receipts were broadly on target for the three largest sources of taxation.
Income tax, VAT and excise duties in the period together amounted to €14.56 billion, just €9 million higher than expected.
Despite the June performance, however, corporation taxes in the year to date exceeded expectations by €337 million.
Stamp duty and capital gains tax receipts were, respectively, €332 million and €217 million ahead of schedule over the same period.
Government spending is behind Budget targets, however, but the Department of Finance said "both current and capital spending is expected to pick up by year end ".
Analysis, page 18