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Tax revenues in first seven months up 10% on last year

Tax revenue in the year to the end of July stood at €47.8 billion, up by €4.3 billion or 10 per cent on the same period in 2022.

Total gross voted expenditure to the end of July amounted to €49.2 billion, €3.9 billion or 8.6 per cent above the same period in 2022.

Income tax receipts for the period were €18.2 billion while VAT receipts were at €13.2 billion.

Corporation tax receipts to the end of July were up by €1.9 billion on last year to €10.9 billion.

A €700 million Exchequer surplus was recorded in the period, compared with five billion in July last year.

The deterioration was driven by the transfer of four billion euros in windfall tax receipts to the National Reserve Fund earlier this year, the Department of Finance said.

Minister for Finance Michael McGrath said Wednesday’s figures continue a trend of “robust income tax returns and steady growth in VAT receipts, reflecting the strength of an economy that is now operating at essentially full employment”.

However, he warned a considerable portion of the increased tax revenues are potentially unsustainable corporation tax receipts.

Mr McGrath said: “This Government is taking steps to address the exposure of our public finances to this revenue stream: six billion euro in windfall receipts have been transferred to the National Reserve Fund and work is under way on proposals for a longer-term investment fund.

“In addition, in the Summer Economic Statement last month, Government announced that 2.25 billion in windfall receipts will be made available to fund expanded capital investment over the period 2024-2026.

“The fiscal strategy for Budget 2024 set out in the Summer Economic Statement strikes the appropriate balance between continuing to invest in our public services and infrastructure and ensuring the long-term sustainability of our public finances.”

Minister for Public Expenditure Paschal Donohoe said the increased expenditure has been invested in providing public services, enhancing infrastructure and supporting an ageing population.

He said: “This builds on continued investment to provide better public services and deliver for the long-term needs of our future population.

“These are the core ambitions of Government and will be a key focus of the upcoming Budget negotiations. I have recently set out the context for these negotiations in the Mid-Year Expenditure Report.

“The parameters outlined reflect the Government’s commitment to delivering high-quality public services and infrastructure while ensuring the economy and public finances remain on a sustainable pathway.

“I will be engaging with my colleagues over the coming weeks and months to ensure we can effectively deliver on these key priorities.”

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