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Exchequer takes in more tax in January

Monday, February 04 16:45:34

Latest Exchequer returns for the first month of the yearn show a total tax take that rose compared to a year ago with a 10pc jump in income tax receipts.

Tax revenues in January 2013 amounted to E3,774 million, an increase of E109 million or 3pc on the same month in 2012.

Adjusting for inflated corporation tax figures in January 2012 and the earlier than normal receipt of the Health Insurance Levy contribution to stamp duties in January 2013, year-on-year growth of an estimated 5.6pc was recorded on an adjusted basis. The amount collected in January represents almost 10pc of the annual Budget 2013 target and is broadly consistent with expectations, the Department of Finance said.

Income tax performed strongly and was E127 million (10pc) up on January 2012. This may be reflective of a more benign labour market late last year, as evidenced by the fall in the standardised unemployment rate, it said.

January is traditionally a quiet month for corporation tax and recorded receipts of E19 million in the month. This compares to E271 million in receipts recorded during the same period last year. However, this year-on-year decrease reflects the impact of the delayed E251 million in corporation tax receipts from December 2011 into January 2012. Adjusting for this late payment, CT recorded a marginal decrease in January 2013.

Excise duties, at E319 million at end-January, recorded year-on-year growth of E30 million (10.3pc).

VAT, the last of the "big 4" tax-heads, recorded a E16 million (0.9pc) year-on-year increase in January.

Net voted expenditure for January 2013 was E3,983 million. The year-on-year increase was 4.1pc or E157 million.

Net voted current expenditure for January 2013 was E3,874 million. The year-on-year increase was 7.2pc or E259 million. The timing of public service and social welfare paydays is the primary driver of the increase in non voted expenditure. This is purely a timing issue and will even out over the course of the year. The most significant increase in any of the vote groups was Social Protection which showed a year-on-year increase of 18pc (E179m) compared with the same period in 2012, the Department of Finance said.