Corporate Tax

The corporate tax hike in November is additional fueled by spending under funds

November saw a record tax hike for the government while spending was lower than forecast.

According to the Treasury Department’s Fiscal Monitor, tax revenue was $ 11.3 billion last month.

November is usually the best month for corporate tax receipts.

In the year to date, corporate income tax has brought in a total of EUR 13.5 billion, almost EUR 3 billion more than estimates and compared to the same period in the previous year.

The Irish Fiscal Advisory Council warned this week that given the volatility of taxes, the government should place all corporate tax profits in a Rainy Day fund.

The government raised its $ 1.5 billion last year.

Ibec group of companies today called on the government to use additional budget funds to help creatives, nightclubs, art and entertainment venues, amid ongoing restrictions in the industry.

“The government urgently needs to unlock these resources and provide a much-needed safety net for these concentrated businesses struggling in the experience economy,” said Danny McCoy, CEO of Ibec.

“It is clear that recent Covid concerns have led consumers to become more cautious and many companies have seen their bookings plummet for the crucial revenue-generating holiday season.”

Meanwhile, income tax was just under $ 3.8 billion in November last year through December.

There was also a record hike in indirect taxes, with November being the last sales taxable month of the year. A total of 2.6 billion euros in VAT was collected, 10 percent above estimates.

Overall, VAT revenue has increased over 24 percent year-to-date compared to the same period in 2020 as the economy recovers.

The expenditure of all ministries and authorities at the end of November was 74.7 billion.

The total shortfall in income over expenditure on a rolling 12-month basis at the end of November was just under € 4.9 billion.

Stamp duty and vehicle tax were slightly below estimates, while excise taxes, capital gains tax, and capital acquisitions tax were all above the profile.

Related Articles