Tax revenues for June were up 4 per cent on the same period last year. High performing corporation tax receipts appear to be making up for the steep decline in VAT and excise duty.
Corporation tax receipts for the month were €62 million ahead of last year. With June being a significant month for preliminary tax payments for large corporates with a December year-end, bigger businesses appear to be holding steady through the COVID-19 crisis. Cumulative corporation tax receipts are 41 per cent ahead of the same period last year.
Income tax receipts have fallen 21 per cent compared to June 2019, but cumulative figures for 2020 remain marginally ahead of last year. Strong performance in January and February of this year have supported the cumulative position.
A steep decline of 31 per cent year or year was experienced in June excise duty receipts. Cumulatively, excise duty receipts are down 24 per cent for the first half of the year. With many restaurants and pubs reopening this month, movements in excise duty receipts may be one to watch for an indication of consumer behaviours in the ‘new normal’. June is a non-VAT month; the cumulative VAT position shows a 21 per cent deterioration on 2019.
There are indications of increased share trading, with stamp duty receipts up 14 per cent year-on-year.
While tax revenues to end-June were up 0.7 per cent, total net voted expenditure to end-June amounted to €31.9 billion. An Exchequer deficit of over €5.3 billion was recorded to end-June.
More details on the June Exchequer returns can be found on the Department of Finance website.