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Irish tax collection shortfall narrows in May

Written by Business World, on 6th Jun 2017. Posted in Financial

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Ireland collected 1.4% less tax than expected in the first five months of the year, the finance ministry said on Friday, but that was a significant improvement from the 2.4% shortfall it reported a month ago.

Ireland's economy has been the best performing in the European Union for the past three years, swelling the tax take in the process. The finance ministry has forecast that tax revenues will grow by 5.2% in 2017.

Overall tax revenues were up 2.9% year-on-year by the end of May, improving from the increase of 0.5% reported a month earlier, the ministry said.

Corporation tax income was ahead of target in May and the cumulative shortfall from the start of the year narrowed to 185 million euros at the end of May from 223 million euros at the end of April.

Income tax receipts were 2.6% below target for the year so far and excise duties were 4.3% behind, but value-added tax take was 3.9% ahead.

With expenditure 1.5% less than planned, the exchequer posted a 383 million euro surplus at the end of May, compared with a deficit of 125 million at the same point a year ago.

Ireland aims to cut its deficit to 0.4% of gross domestic product this year as it moves towards its first balanced budget in a decade. (Reuters)

Source: www.businessworld.ie

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