Joe Carey
Question:78 Deputy Joe Carey asked the Minister for Finance the reason income tax receipts were below profile in the Exchequer returns published on 2 November 2010; and if he will make a statement on the matter. [41611/10]
View answerWednesday, 10 November 2010
Questions (42, 43)
Thomas P. Broughan
Question:91 Deputy Thomas P. Broughan asked the Minister for Finance his views on the continued weakness in income tax receipts; the extent to which he attributes this ongoing weakness to emigration, job losses, declining hourly pay, declining hours worked, declining labour market participation or other factors; and if he will make a statement on the matter. [41623/10]
View answerWritten answers
I propose to take Questions Nos. 78 and 91 together.
Income tax receipts amounted to €8.6 billion for the first ten months of the year. This represented a decline of €579 million or 6.3% on the level collected in the same period of 2009. Budget 2010 forecast that income tax receipts would decline by 2.6% in 2010. At end-October, income tax receipts were €369 million or 4.1% below target. The underperformance in income tax receipts reflects a number of factors, including weakness in the labour market, where there have been declines in pay levels, hours worked and numbers employed. Consequently, PAYE receipts are approximately €200 million below target. The bulk of the remainder of the shortfall against target is driven by DIRT receipts which were below profile for the month of October by an amount in excess of €150 million. An initial assessment of this data, suggests that this reflects the decline in deposit interest rates and the high level of debt repayment contained within the savings ratio.