Keeping in line with the positive trend in recent months, tax revenues for the first seven months of the year, at €20.3bn, are €500m (2.5%) ahead of target and €1.68bn up on the same period last year. Receipts for three of the four main taxes; income tax, corporation tax and VAT, were greater than expected for the period.
Corporation tax is €313 million ahead of target for the seven month period and €406m up on the same period last year. €39m more than expected was collected in the month of July. According to Exchequer statements, a significant factor in this strong performance was the higher than profiled receipts in the important May/June collection period. However, there are significant targets to meet in the coming months, in November especially, which will go a long way to determining the end-year outturn.
Income tax for the first seven months of 2012 is €159 million (2.0%) ahead cumulatively. A large part of this over performance compared to profile is the result of a technical reclassification of PRSI receipts.
VAT receipts in the month of July were €58 million (4.3%) ahead of target and are now €87 million (1.3%) ahead of target cumulatively. Reflecting the 2% increase in the standard rate of VAT, year-on-year basis receipts are up 3.2% cumulatively. A 2.6% increase is the target for the whole year.
Both stamp duty and excise are behind target for the seven month period at €329m and €2.6bn respectively.
The analysis of tax receipt for the period end-July is published on the Department of Finance website.