Written answers

Tuesday, 16 May 2017

Department of Jobs, Enterprise and Innovation

Income Data

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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90. To ask the Minister for Jobs, Enterprise and Innovation her views on pay across the country in view of the recent lower than expected tax takes; and if she will make a statement on the matter. [23028/17]

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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Exchequer Income Tax receipts of €1,762 million collected in April were 1.0% or €19m below monthly target. This represents a 0.8% or €14m increase compared to April 2016.

The Revenue Commissioners and the Department of Finance have stated that they are examining the matter.

Of late, the bulk of this jobs growth has been in full time employment, representing a shift from the initial pick-up in part time employment seen at the beginning of the turn-around in the labour market. The seasonally adjusted unemployment rate for April 2017 was 6.2%, down from 6.4% in March 2017 and down from 8.4% in April 2016

The positive trends in the labour market do not lend themselves to a conclusion that lower income tax figures are linked to new jobs being lower paid or that earnings in a specific sector are falling.

I am informed by my colleague the Minister for Finance that we were in a similar position last year, when one-off payments of circa €100 million are excluded – income tax was down 1.5% or €94 million against profile at end April 2016. However, due to a pick-up in receipts over the remainder of the year, income tax finished 2016 ahead of target.

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