Tax Revenues on the Rise in Ireland
June 3, 2011 Taxation in Ireland
The government of Ireland is seeing a pickup in national tax collection levels, although the revenues are still marginally behind expectations.
The Department of Finance of Ireland has released its national Exchequer Statement for the first five month of the 2011 calendar year. The latest publication shows that in the five months of 2011 tax revenues in Ireland grew by 5.6 percent if compared to the same period in 2010.
By the end of May Irish tax authorities had received EUR 12.8 billion in overall tax payments. The collections were 0.5 percent below the government’s previously determined target, but EUR 678 million above receipts for the same time period last year.
The overall tax revenues in Ireland were comprised of EUR 5 billion in personal income taxes, EUR 4.9 billion of Value Added Taxes (VAT), EUR 599 million in corporate income taxes, EUR 1.8 billion of excise duties, and approximately EUR 476 million in other taxes. According to figures published in the Exchequer Statement, national collections of VAT fell by 1.9 percent, resulting in a EUR 92 million shortfall in profits, corporate income tax revenues for the period dropped by 10.4 percent, resulting in a EUR 70 million loss of government revenues.
Despite the overall growth of tax revenues, the government of Ireland still saw its budget deficit rise from EUR 7.86 billion to EUR 10.2 billion. The increase is attributed to the government’s recent EUR 3 billion bailout of Anglo Irish Bank Corp and Irish Nationwide Building Society, which have been experiencing significant financial trouble since earlier this year . Local analysts forecast that the deficit will not see any more significant increase throughout the year, barring any unforeseen events.
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