Dáil Éireann Debate, Tuesday - 16 October 2007
152 Deputy Aengus Ó Snodaigh asked the Tánaiste and Minister for Finance the reason for the lack of accuracy in respect of the projections made by the Government with regard to tax receipts for 2007. [23654/07]
Amharc ar fhreagraAt Budget time, based on the latest available economic and fiscal information to hand, my Department prepares its forecasts for the coming years. At the time of the last Budget some commentators suggested that my tax projections were too cautious. At the end of September tax receipts were €490 million or 1.5% below profile. Income Tax and Corporation Tax are performing well and when taken together with VAT and Excise Duties, the four main taxes, which were forecast to account for around 85 per cent of total taxes this year, are on target.
This year, it now looks likely that tax receipts for the year will be about 2% below the Budget day target. This shortfall is largely accounted for by lower than expected receipts for Stamp Duty, Capital Gains Tax and VAT — reflecting the change in the residential property market as it returns to more normal levels of activity. Excise Duties are also expected to be below target but Income Tax and Corporation Tax are expected to outperform their targets.
My Department is anxious to provide the most accurate tax forecasts possible in order to assist in managing the economy and the budgetary process. A Group chaired by a Senior Economist from the Central Bank, currently on secondment to the Department of Finance was formed to conduct a review of the methodology employed. I expect to receive a copy of the Group's report shortly.
