Ireland’s 10-month tax revenue up 25% to €64bn

Ireland’s tax revenue for the 10 months to the end of October was almost €64 billion —  €13 billion or 25% ahead of the same period last year.

That’s according to the latest figures from the Department of Finance.

The annual comparison was flattered by a number of factors, including a lockdown in the opening months of last year.

The Exchequer figures show that tax revenues to the end of October were €63.9 billion, with income tax receipts up over 15% to €23.9 billion.

Corporation tax receipts rose €6.6 billion to €16.2 billion.

VAT receipts to end-October were €15.5 billion, up almost 23%.

An Exchequer surplus of €7.3 billion was recorded to end-October — but the fiscal accounts do not yet reflect the full implementation of the Budget 2023 cost of living package and the transfer of €2 billion to the National Reserve fund.

Total “gross voted expenditure” to end-October amounted to €66.5 billion, which was €1 billion or 1.5% below the same period in 2021. This was driven by a decline in expenditure in the Department of Social Protection due to the impact of COVID restrictions in early 2021.

Minister for Finance Paschal Donohoe said: “Today’s figures show that tax receipts remain strong at the start of the fourth quarter.

“However, the strength of potentially volatile corporate tax receipts continue to provide an artificially positive picture of the public finances.

“As I have warned on many occasions, while these receipts are welcome, it is imperative that that Government does not build up permanent fiscal commitments on the basis of revenues that may prove transitory.

“Budget 2023 was, of course, a ‘Cost of Living Budget’ focused on mitigating inflationary pressures.

“The government has aimed to strike a delicate balance between providing assistance to those suffering the most but without adding fuel to the fire of inflation, while ensuring that we retain sufficient firepower to respond to further challenges over the coming years.

“That is why I allocated €2 billion to the National Reserve Fund this year, with a further €4 billion to be transferred next year.

“This policy instrument is aimed at further enhancing the resilience of the public finances and will enable the government to respond in a pro-active manner should risks materialise over the coming period.”