Richard Bruton (Dublin North Central, Fine Gael)
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Question 246: To ask the Minister for Finance the tax projections by source underpinning the forecast tax reserve of €47.4 billion in 2007 and the implied absolute and percentage growth on the 2006 outturn. [38555/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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As indicated in the Pre Budget Outlook, the tax projections take account of performance to the end of September and revisions to the economic projections since Budget 2006. The tax projection for 2007 shows an increase of €3,550 million or 8.1 per cent over the projected outturn for 2006. The principal sources of revenue, as a proportion of total tax revenue, are Income tax (28 per cent), consumption taxes (45 per cent), corporation tax (13 per cent) and capital taxes, including stamp duty (14 per cent). These projections will of course be affected by any decisions taken in the context of the forthcoming Budget.

These projections are technical in nature and will inevitably differ from those that will be published on Budget day, not least because of performance during the remainder of 2006. For example, about 20 per cent of total taxes profiled for collection in 2006 are expected in November alone. The latest Exchequer Statement provides details of how the different tax heads are performing against profile.

It is likely however that capital taxes will make up a significant part of the final excess for 2006, owing much to the continued buoyancy of the property market. In addition, there is no reason to believe, at this point, that the other taxes which have performed well to date will not continue to perform well and these will likely contribute to the overall projected excess.

Tax projections for 2006 and 2007 will be published in detail on a pre-Budget basis in the White Paper on Receipts and Expenditure. The post-Budget details will be published on Budget day.