Crown accounts further in red - tax take down $1.57 billion
Tax revenue is down again on forecasts but still ahead of the same time last year, says Treasury.
Tax revenue is down again on forecasts but still ahead of the same time last year, according to Treasury data released this morning.
All the main tax types were down on forecasts for the nine months to March,Treasury says, leaving a hole of $1.57 billion.
The total tax take so far, of $39.39 billion, is still $1.8 billion ahead of tax revenue for the same period last year.
The gap, on a cash basis, is even higher, at slightly over $1.9 billion more taken in tax for the nine months to March.
The biggest hole at the moment is corporate tax, down $659 million on forecasts.
However, the latest forecast is for that to partially reverse in the final quarter of the current financial year, because of calculations based on the reporting of some of the country’s larger companies.
“While the economy was generally weaker than expected to March 31, stronger performance by some corporate taxpayers has also been observed during the reporting
period,” Treasury says.
“Consequently, a boost to tax revenue is expected to make up approximately $400 million of lost ground in the final quarter of the financial year.”
GST revenue was $569m below forecasts, mostly due to earthquake related insurance refunds being hither than expected – although, again, Treasury forecasts some of this (about $200m) to reverse out over the next three months.
“Source deductions” – mostly PAYE and related tax – is also, lower, by $236m, mostly through an expected rise in employment not taking place.
Spending is also below forecast, however, by $1.7 billion, although much of this is due to changes in timing.
The operating balance before gains and losses deficit for the nine months to March 31 was $800m higher than forecast at $6.13 billion.
Net government debt is t $50.06 billion, or 24.5% of GDP, while gross debt is $75.93 billion, or 37.1% of GDP.
The interest bill for the nine months to March is $3.044 billion.
Rob Hosking
Tue, 08 May 2012
Tue, 08 May 2012
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Crown accounts further in red - tax take down $1.57 billion
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