Brian Cowen (Laois-Offaly, Fianna Fail)

It is not putting a burden on ordinary taxpayers but is ensuring that capital taxes, given that there are low rates of income tax, are making a far better contribution than we expected. Sustained buoyancy in the property market in 2005, which is behind the excess yields in stamp duties, and capital gains taxes defied expectations. The Department of Finance, in common with most other commentators, including the Central Bank and the ESRI, had expected a cooling off in the property market in 2005 but it did not occur. In the circumstances, there was no real basis in December 2004 for projecting increases of more than 30% in these taxes, which took place in 2005.

The big four taxes — VAT, income tax, corporation tax and excise duties — represented close to 90% of all targeted tax revenues in 2005 and accounted for 87% of tax revenues collected. Excluding the excess from the Revenue Commissioners' main special investigations, these tax headings together came within less than 1% of target and accounted for approximately 13% of the total excess in tax revenues in 2005.

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