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THE GOVERNMENT’S TAX revenue is up year-on-year, despite shortfalls in all four of the tax categories with VAT behind target for the tenth month this year.
The Department of Finance said tax revenues remain in line with expectations, up €37 million, on profile, and up €888 million year-on-year.
Income tax recorded a shortfall of €41 million which the Department of Finance said was “not unexpected” and was due to a weak performance of the ‘DIRT’ tax on savings.
Corporation tax receipts totalled €136 million last month – some €4 million below target. Excise duties were also €52 million behind profile in October but are up €180 million year-on-year.
VAT receipts for the month totalled €212 million, representing a shortfall of €18 million. This is the tenth month this year there has been a shortfall in VAT which is now €182 million behind target this year.
The Local Property Tax brought in €15 million in October bringing the total collected so far this year to €215 million.
The remaining, smaller tax-head – customs, CGT, CAT, and stamps, were ahead of target at €68 million combined.
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The Government continues to take money out of peoples pockets in consecutive budgets and the VAT take is going down, they’ll need to get an incredibly expensive consultancy firm in to get to the bottom of a head scratcher like this.
That is because the Black Economy doesn’t do VAT.
“Nixers” is a term with a big come-back.
I because we have no money LEFT
Deflation is also coming to the Euro zone. If that gets embedded in to the wider Euro economy then it is either print and write off debt as quick as you can.
Here is a brain fart for Revenue why not look for the property tax to be paid before Christmas and hey presto a bumper VAT return will ensue, who needs to employ expensive finance boffins, watch the money roll in
You’d have to have a national ‘Don’t spend a penny week’ to change who is being targeted in the budgets.
yep, they don’t know theres a back door, it exists and haven’t watched it. same with money been sent out of the country at an alarming rate. not a lot of money earned here by migrant workers been spent in the economy, just the bare essentials and i mean ‘bare’. they’d live off cereal. support it much? backfire.
Oh dear, better raise rate by another percent or two. That will surely close the gap, and won’t have any side effects whatsoever.
It appears the Local Property Tax has been diverted to Irish water. So much for the claim it would be used to improve local services…
So true Kerry.
Don’t pay it so . Iam not
If you dont pay, the revenue office say they have been given the power to deduct it from wages or from all welfare payments,interesting times ahead.
It’s just not worth the trouble by trying to avoid it.
23% vat, maybe that’s why it’s down
Primarily it is down to deflation, which is very bad.
In a hard currency regime deflation, particularly wage deflation is how countries gain competitiveness. This is that market at work. Deflation in a highly indebted nation, which includes the sovereign in most cases, is very dangerous, as the debts spiral in real terms.
Europe isn’t one shock away from being Japan, it is Japan. Over indebtedness leads to 2 possible outcomes, default and devalue or print money to buy government debt (default through devaluation). Europe is going to be like Japan as they are neither printing money or allowing default and devalue, so the debts will just spiral (as they already are).
I don’t however think that the US has it right as they are stuck in their own trap where they can’t stop printing money as they will instantly have a 2008 style crash in the stock market. Japan will be a success in the way the Asian crisis was a success for South Korea, meaning their will be a lot of domestic and international losers before growth returns.
If i were Germany I would be looking at QE infinity in the US and Japan and thinking we’ve got it really good. The status quo is great for Germany, the more the rest of the Eurozone withers on the vine the better as Germany attracts all Euro denominated investment capital.
European politicians don’t care about their voters well being. Europe is not a grand vision for the people of Europe, it is a grand vision for the politicians and political class of Europe.
I think the government has based economic policy on the simpsons……
Employee: Four pounds of grease… that comes to… sixty-three cents.
Homer Simpson: Woo-hoo!
Bart Simpson: Dad, all that bacon cost twenty-seven dollars.
Homer Simpson: Yeah, but your mom paid for that!
Bart Simpson: But doesn’t she get her money from you?
Homer Simpson: And I get my money from grease! What’s the problem?
Great application!!!! Shame I can only give 1 green thumb!!
But they increased the VAT rate, so why is the VAT take down? That must mean that those equilibrium thingys economists talk about are actually real – why didn’t anyone tell Noonan!
What else do you expect when you take more from people which leaves them with less to spend.
Maybe get some new advisors in to find out why vat is down, Or just face facts you’re taking all our money in tax already Noonan you clown.
Seismic shift, turning corners, green shoots , consumer confidence , thousands of jobs every month and all that… Sorry , have I left anything out ..?
This shower of incompetents generate more spin than a washing machine factory.
Careful Mike, you have Rogers on accusing you of being uncouth, uneducated etc etc
@Mike Clinton
You forgot the 5 Point Plan ;)
Leslie, that’s us off the Christmas card list.
@ Mike B.
Oh yeah !!. Forgot that.
Thanks for the reminder.
Dont forget the ‘Firewall’ Mike. Loved that one.
Basic economics. Something this govt haven’t a clue about. Introduced a multitude of new taxes so folks stop spending or their spending power gone.
doest matter what crowd are running the country here, when it comes to economics no political party seem to have a clue what so ever!!!!
You have text book teachers, trying to run an economy and keep their friends in the tax loop holes!
Also to the detriment of businesses and jobs
Kevin, its all intentional. They work for big business, not for us.
Why not buy as much as you can from abroad on line for a while ? That would not save you any VAT but it would stop Nooner getting his grubby paws on it :-)
Bought a pair of Sketcher mens shoes today from an English website, delivered to my door €52.Cheapest available in my home town €65/€70.
I will be heading up north for Xmas shopping this year
Pete my wife and I are heading up Saturday. Asda in Enniskillen is great.
What’ll happen, If people stopped shopping altogether, except for food and essentials?
The government will still borrow so they themselves can get paid.
Stephen Murphy…
I have often thought about this scenario.
It would be a powerful means of shaking up current financial policies.
But I can’t see the majority of people going along with this idea.
Well, with all the taxes coming in and have to be paid. It may happen, un-intentionally and should be made public!
The way to raise more tax is to lower the tax rate. 15% flat tax and have two vat rates 15% and 7.5% for labour intensive industries like services and some manufacturing. We need to lay off 80,000 from Quangos and PS admin jobs that don’t need to be done (e.g. car tax).
Once those working have more money they will spend more. More jobs created in the private sector. Nobody turning down overtime, putting even more money into the economy.
A flat tax rate would make Ireland very attractive for ICT so you’d have thousands of high paid jobs created for both Irish people and EU nationals. All paying 15% tax here.
It’s a no brainer at this point. Watch Malta which slashed taxes in their budget today
Time to shop overseas, online shopping and in the six counties. Sink a 500 gallon tank in the garden catch rain water with a pump to feed the tank in the house. There is lots of ways to stop your money going to pay taxes.
Well said Mr Carr
Law of diminishing returns. economics 101
Someone in the Dept of Finance better go back to school
The folly of what they are doing is laid bare , people are not able to spend they are being molested by the system !!!
The high vat rate is is only pushing prices up, people are still shopping, but buying online from the uk . This only increases the exchequer figures in the uk. They need to wise up in the dail, and bring down the vat rate , so retailers can be more competitive with pricing, and we all need to shop local!!!.
Yep. The domestic economy is dying on its feet.
Why?
Stealth taxes.
Thats why.
People do not have either the disposable income or the confidence to spend.
Take LPT (Local Property Tax) or to give it its proper name Family Home Tax for example.
What a crazy idea to introduce such a tax at a time like this.
Family Home Tax is simply soaking up any spare cash families may have had to spend in the local economy. It is a wrong tax at a wrong time.
You want to breath life back into the domestic economy Minister?
Well start with the phased abolition of this crazy multiple taxation.
Exempt all those Family Home purchasers/owners on less than the average wage from liability for Family Home Tax.
It is an unjust, unfair, immoral and anti-family tax.
Let’s see the back of it.
This is deflation in the Euro zone prices are dropping even if more is being sold. As prices drop, so do profits (and tax) in time it leads to job losses and business closure which lead to more deflation and down and down.
This is happening all over Europe as austerity and demand destruction kill the economy, it is even happening in Germany, when we should have inflation of 4-5% to destroy the debt and getting economies firing again.
This gets entrenched and massive QE or defaults are the only solution.
To all who think it is a good idea to shop on line and outside the country . We are broke as in no money so unless we spend what we can locally we will continue to be broke . Its not my fault or yours but it is a fact and nobody can fix this except ourselves so the only people we are hurting by shopping out side the country are ourselves so my advice is shop local
I and many others would happily buy local but when every penny counts that is not always an option. The price differential between a lot of product sold here versus the price paid online including delivery can be vast.. while a lot of the difference can be associated with higher tax rated here, there is still an unpleasant element of price gouging by suppliers and retailers who still appear to think that the Celtic Tiger is alive and well.
Ahhhh wake up what do you expect when your choke there very life out of the normal people the very people who spend every day and put money into the economy
Income tax recorded a shortfall of €41 million ??
why is this happen when we are told that the live register is falling and we are told we are creating 3000 jobs a month??
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