The Department of Finance has corrected what is described as a discrepancy in last week’s exchequer returns data.

In an unusual move, the department said today it had been informed by the Central Bank that €101 million which had been classified as VAT should have been classified as income tax.

It said, however, the reclassification would not affect the overall level of tax collected for March.

The department declined to say what caused the error.

In a brief statement, it said: “The department, the Revenue Commissioners and the Central Bank are currently examining the issue and a revised Exchequer statement will issue in due course.”

The figures, published last Wednesday, put the Government’s VAT intake at €3.51 billion, which was €210 million, or 6.4 per cent up on the year and 1.6 per cent ahead of forecast.

Today’s correction alters the performance of one of the economy’s key metrics.

Many observers interpreted the bounce in VAT as evidence of recovery on the high street, even though recent retail sales data from the Central Statistics Office had indicated another monthly fall.

The exchequer returns for March showed tax revenue as a whole were €9.23 billion, which was €415 million, or 4.7 per cent, up on the same period last year, and €257 million, or 2.9 per cent, higher than forecast.

In the original set of figures, income tax, which is the biggest tax heading, generated €3.795 billion, which was 3.5 per cent up on the same period, reflecting the jump in employment last year.