The lingering impact of the recession is reflected in the latest Crown accounts, with drops in the tax take – but the latest figures may indicate a turnaround.Company tax take was down $108 million on forecasts, or 1.9%, for the 10 months to April,
The lingering impact of the recession is reflected in the latest Crown accounts, with drops in the tax take – but the latest figures may indicate a turnaround.
Company tax take was down $108 million on forecasts, or 1.9%, for the 10 months to April, according to figures released by the Treasury this morning.
Both terminal tax for the 2008/09 year and lower petroleum fuel excise tax collected saw a drop in cash received by the government. They were the main contributors to a cash deficit which was $275 million more than forecast.
The actual overall core Crown revenue was largely on target, because “other individuals" tax was up by $106 million. This may reflect that the recession has not been as deep and as long as expected for some small firms and that their owners are paying higher provisional tax than planned. However the Treasury says it is too soon to be sure about this. Next month’s figures include the May provisional tax take and this should give a clearer steer on the issue.
On the expenses side, outlays are also down, by $418 millon or 0.8%. The main reason is lower family tax credits of $105 million, because of a forecast write-off not eventuating.
The accounts also show State Services Minister Tony Ryall’s drive to lower the public sector wage bill is having some effect:” personnel costs are sone $54 million, spread across a wide number of departments.
