Tax take below target in May

The State’s tax take was marginally below expectations last month because of a falloff in corporation tax receipts.

The State’s tax take was marginally below expectations last month because of a falloff in corporation tax receipts.

The latest Exchequer returns, published by the Department of Finance this afternoon, show that tax revenues at the end of May stood at €12.8 billion, some €70 million or 0.5 per cent lower than targets set by the department in January.

Tax receipts in the month of May were €178 million lower than expected because of a shortfall of €140 million in corporation tax receipts.

While part of the shortfall was blamed on lower than expected payments, a significant part of it is due to timing issues, the Department of Finance said in a statement accompanying the figures.

READ MORE

“It now seems that some corporation tax payments originally scheduled for collection in May will take place later in the year,” it added.

Three of the other “big four” tax categories - income tax, corporation tax and excises duties - recorded mixed results.

Income tax receipts were exactly in line with target, excise duties came in €50 million above profile while VAT receipts were €92 million (2 per cent) below target.

Total expenditure at the end of May stood at €18.4 billion, some €367 million below target largely because of an “under-spend” in agriculture due to earlier than expected EU payments.

The total cost of servicing the national debt for the first five months of the year was €2.6 billion, up 0.7 billion on last year.

The €0.7 billion annual increase in debt servicing expenditure reflects the cost of servicing a “higher debt burden,” the department said.