Taxes collected by the State so far this year are 7.3% up on 2024, leaving the Government in a strong position ahead of next month’s Budget.
When one-off payments of back taxes from iPhone-maker Apple are excluded, revenue rose 4.4%.
The latest set of Exchequer Returns for the month of August show income tax collected so far this year is up 4.7% reflecting a strong employment market. VAT rose 4.8%.
However, there was a significant fall in corporation tax last month which dropped 42.8% but the Department of Finance said that was compared to an exceptionally strong August last year.
Minister for Finance Paschal Donohoe said today’s figures are a reminder of the “vulnerability” of our corporation tax base.
So far in 2025 corporation tax is up 1.1% when payments from Apple are excluded.
While taxes are performing well there has also been a significant increase in spending so far this year with figures showing expenditure is 7.8% higher.
The Irish Fiscal Advisory Council has consistently highlighted rapidly increasing spending as a concern for the public finances.
“The figures released today show that expenditure is ahead of the plans set out by Departments, but overall, this remains a variance of less than 1%,” said Jack Chambers, Minister for Public Expenditure, Public Service Reform and Digitalisation.
“Expenditure to this point in the year has supported continued investment in our public services and infrastructure and is delivering on key government priorities including increased weekly Social Welfare payments and investment in our health services,” he added.
Today’s figures show there was an exchequer surplus of €3.2bn recorded to the end of August compared to €3.8bn in the same period last year.
When payments from Apple are excluded, there was an underlying exchequer deficit of €0.1bn, a decrease of €3.9bn on the same period last year.
This has been partly driven by the Government’s decision to put €3bn into two long-term savings funds.
Brendan Murphy, Tax Partner at Baker Tilly Ireland said today’s figures act as a reminder of the “precarious position” we find ourselves in ahead of October’s budget.
“While the government will be hopeful of utilising a budget surplus to fund essential one-off infrastructure projects to encourage large corporates to continue to expand in Ireland, we may see increased calls for a conservative package in the face of global headwinds,” he said.
Article Source – Tax collected by State so far this year up 7.3% on 2024
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