Total tax receipts for the first month of 2012 amounted to €3.66 million, 17% or a €534 million increase on the same month in 2011. This represents just over 10% of the total projected expected tax revenues for 2012.
According to the analysis of tax receipts, corporation tax receipts for January 2012 are 276.3% up on the same month in 2011. However, approx. €250 million of the €271 million collected in corporation tax receipts for the month was originally due for payment in December 2011 but was not received into the exchequer account until January.
Income tax receipts are 27% up on the same month in 2011 at €1.26 billion. The significant year-on-year increase is in large due to the Universal Social Charge (USC). This charge, which came into force on 1 January 2011, did not benefit the January 2011 receipts as these receipts were based on earnings and employment in December 2010. The impact of the USC on exchequer receipts in 2011 was not seen until February of that year.
VAT receipts for the month were €1.725 billion, 3% more than was collected for the same period in 2011. January is the key month for VAT, as receipts in this month represent the Christmas trading period, typically the strongest period for retailers. However some industry sources have suggested that the January figures for 2011 were unusually depressed because of the effect of the very bad weather conditions on January 2011 retail sales. If so, this would put a better sheen on the first VAT result of 2012.
Other taxes are notably up on the same period from 2011, €12 million more was collected in capital gains tax, stamp duty receipts are 13% up on January 2011 and excise recorded a 2.7% increase. It’s important not to overanalyse these results – the €12m bounce in CGT is as likely to be attributable to a single disposal, rather than reflecting the start of an upward trend in CGT receipts following the rate increase.
The January 2012 exchequer statements, including the analysis of taxation receipts are published on the Department of Finance website and can be accessed here.