Vol. 553 No. 5
86 Mr. M. Higgins asked the Minister for Finance the total receipts in respect of income tax revenue for 2002 up to the latest date for which figures are available; the way in which this compares with the same period in 2001; the way in which this compares with the figures projected in the budget; and if he will make a statement on the matter. [14492/02]
The budget day target for income tax receipts for 2002 is for an increase of 1.1% over the 2001 outturn. The Exchequer Statement which was published on 5 June 2002, showed that income tax receipts in the year to 31 May 2002 totalled €4,110 million. This represents a decrease of 14.7% on the same period in 2001.
The change to a calendar year means that the first five months of 2002 have had to absorb the changes from both budget 2001 and budget 2002. In addition to this, payments into the SSIA accounts did not commence until June 2001. This means that income tax receipts in the January to May 2002 period have been reduced by the SSIA payments in those months whereas the same period in 2001 had no similar reduction.
There is also a substantial effect from the performance of the economy in each period. Income tax receipts in 2001 weakened significantly in the latter half of that year due to declining economic conditions. This is demonstrated by the fact that income tax receipts in the first five months of last year were 9.3% up on the previous year while receipts in the remainder of the year recorded a reduction of 2.1%.
As the year progresses, timing factors which are acting to reduce the rate of change in receipts in the early part of the year will gradually be eliminated and the rate of change over 2001 should increase.
Question No. 87 answered with Question No. 83.
