Minister Donohoe welcomes strong taxation performance in November
Higher than expected corporation tax receipts to be used to improve deficit, better positioning Ireland for the future
- Taxation receipts up considerably in November, mainly due to very strong performance of corporation tax receipts;
- Corporate tax receipts reflect higher levels of corporate profitability in the economy;
- For the year to end-November, total tax receipts were €51.4 billion;
- Expenditure is marginally ahead of profile.
Exchequer figures published today by the Department of Finance show that taxation receipts for the month of November were €631 million (7.3 per cent) ahead of target. Tax receipts in November were €938 million (11.3 per cent) higher than in the same month last year, mainly due to very strong corporation tax receipts. November is the most important month of the year for corporation tax collection. These data are consistent with figures from the Central Statistics Office which show an increase in corporate profitability this year.
Welcoming the figures, Finance Minister Paschal Donohoe said:
At the time of the Budget last October, I announced that corporation tax receipts would exceed original expectations. The actual figures for November follow a very strong performance in October, and this means that corporate tax receipts for this year will outperform our most recent expectations.
These additional receipts are not being used to finance additional expenditure. Instead, all of the excess will be set aside to reduce – and possibly eliminate – the headline deficit, putting Ireland in a stronger position and better able to meet the challenges that may lie ahead.
Some of the increase in corporate tax receipts this year is due to one-off factors, which was signaled at Budget time and will not be repeated. For next year, my Department has taken account of this and has projected a decline in corporation tax receipts for 2019; expenditure plans have been set on this basis. Having said that, I am conscious of the increasing concentration of overall taxation revenue on corporation tax receipts and I intend to bring to Government in the new year a set of proposals on how this can be addressed.
On the spending side, gross voted expenditure to the end of November is €56.0 billion, €73 million ahead of profile.
Minister Donohoe stated:
Public expenditure is being managed within expectations and the annual increase reflects the Government’s commitment to the delivery of improved public services. It also reflects the importance the Government attaches to addressing infrastructural bottlenecks in order to boost resilience – especially important given the UK’s forthcoming exit from the European Union – and to maintain continued improvements in our living standards.