CHAPTER 31 – GOVERNMENT AND THE ECONOMY GOVERNMENT INCOME


In chapter 1, we learned that individuals and households must have sources of income to be able to pay for their expenditure. The same is true for the government, which is responsible for managing Ireland’s public finances. Income is required in order to pay for the services and social welfare the government provides.


Government income is more commonly referred to as revenue.


We will learn more about taxation in chapter 33


Revenue from Taxation GO


Taxation is the government practice of collecting money from the individuals and businesses in a country to pay for public services.


Tax is the government’s main source of revenue. It is collected by the Office of the Revenue Commissioners.


The Irish government receives revenue from the following taxes. Income tax


Value Added Tax (VAT)


Deposit Interest Retention Tax (DIRT) Corporation tax Customs duty


Excise duty Motor tax


Local Property Tax (LPT)


KNOW? The Irish


Did You


government received


approximately €950 million from the


privatisation of Bord Gáis Energy in 2014.


Tax paid by employees on their income Tax on goods and services


Tax on interest earned on deposit accounts Tax on company profits


Tax on goods imported into Ireland from outside the EU


Tax on certain goods (e.g. cigarettes and alcohol) Tax paid by car owners


Tax on the market value of all residential properties


Other Sources of Revenue The Irish government also receives revenue from the following sources.


Privatisation Dividends


EU funds The sale of a state-sponsored body


The government’s share of any profit made by state-sponsored bodies


Money from the European Union


369


OUR ECONOMY


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