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Three of the ‘big four’ tax heads fell short of expectations in April

A total of €21 million in local property tax was collected during April.

Image: Taxman via Shutterstock

THE LOCAL PROPERTY Tax added €21 million to the Exchequer’s pot last month, according to figures released by the Department of Finance this afternoon.

Total tax revenues were up to €2.1 billion for April, a €51 million increase on the same month last year. It also marked a €145 million year-on-year jump.

However, separately the “big four” tax heads fell short of expectations.

Although the major components of income tax collections were “broadly in line with expectations”, they were €58 million below profile. The shortfall was primarily due to lower-than-expected DIRT receipts which, according to Revenue, may reflect the reduction in retail interest rates.

At €1.4 billion at end-April, excise duties are €44 million behind profile but are up marginally on the year.

VAT fell short of targets by €34 million for the month of April. For the first four months of the year, it is down €105 million against profile.

Corporation tax is the only major tax head ahead of profile, with an extra €21 million received. However, it decreased €88 million year-on-year.

Stamp duties recorded receipts of €60 million in the month, a 141 per cent increase of €35 million on April last year. On a cumulative basis, stamp duties have increased €225 million. Part of this year-on-year increase is due to technical timing reasons which will likely unwind over the course of the year.

Taken together, the remaining “minor” tax heads – CAT, CGT and Customs – are slightly down on profile, with a combined shortfall of €11 million.

Total ‘voted’ government spending – approved by the Dáil each year – fell by 7.6 per cent to €1.1 billion. All three of the largest spending departments – social protection, health and education – recorded year-on-year reductions.

Net exchequer borrowing was reduced by €3.8 billion during the month, primarily driven by a €4.6 billion Government bond maturity. Debt servicing costs were €207 million high than the corresponding period last year.

The Exchequer deficit for April stood at €2.4 billion, compared to €2.8 billion for April 2012.

The Exchequer deficit for the year to end-April is €6.1 billion, down from €7.1 billion last year. This is €3.6 billion down on profile, showing the effect of the replacement of the IBRC promissory note with the floating rate  government bonds.

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