Steady tax performance in the first quarter of the year; expenditure demonstrates sustained high levels of investment
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From: Department of Finance; Department of Public Expenditure, NDP Delivery and Reform
- Published on: 3 April 2025
- Last updated on: 8 April 2025
Steady tax performance in the first quarter of the year; expenditure demonstrates sustained high levels of investment – Ministers Donohoe & Chambers
- today’s Exchequer returns show that tax receipts in the first quarter of the year were up by €3.5 billion (17.5 per cent) on last year
- when once-off tax receipts arising from the Court of Justice of the European Union (CJEU) ruling of September 10th (€1.7 billion) are excluded, tax revenues amounted to €21.9 billion, up by €1.8 billion (8.9 per cent)
- income tax receipts in Q1 amounted to €8.2 billion, €0.3 billion (3.6 per cent) ahead of last year
- VAT receipts of €7.6 billion were up by €0.5 billion (6.8 per cent)
- corporation tax receipts of €4.8 billion were received in Q1, however, when CJEU tax revenues are excluded, receipts of €3 billion were recorded, up €0.6 billion (24.9 per cent) on the same period last year
- total gross voted expenditure in Q1 amounted to €24.8 billion, €2 billion (8.8 per cent) ahead of the same period last year and €0.2 billion (1%) behind profile
- a headline Exchequer surplus of €4.1 billion was recorded in Q1, this compares to a surplus of €0.3 billion in the same period last year, an improvement of €3.9 billion
- excluding CJEU receipts an underlying Exchequer surplus of €0.9 billion was recorded in the quarter, an improvement of €0.6 billion on last year
Tax receipts of €23.6 billion were collected in the first quarter of the year, up by €3.5 billion on 2024. When once-off tax arising from the CJEU ruling of September 10th 2024 of €1.7 billion is excluded, ‘underlying’ tax revenues stood at €21.9 billion, a €1.8 billion (8.9 per cent) increase on the same quarter last year.
Income tax receipts in Q1 of €8.2 billion were ahead of last year by €0.3 billion (3.6 per cent). VAT in Q1 stood at €7.6 billion, up on 2024 by €0.5 billion (6.8 per cent).
Corporation tax in the quarter was €4.8 billion, €2.3 billion (95.9 per cent) ahead of the same period last year. Excluding once-off receipts arising from the CJEU ruling, receipts of €3 billion were up by €0.6 billion (24.9 per cent), the bulk of which is driven by a once-off payment that boosted February receipts.
Non-tax revenue in the quarter was €1.7 billion, up by €1.6 billion on the same quarter last year, largely driven by transfers to the Exchequer arising from the CJEU judgement, which mainly consist of EU interest.
Total gross voted expenditure in Q1 amounted to €24.8 billion, up by €2 billion (8.8 per cent) on last year and €0.2 billion (1%) behind profile.
At a headline level, an Exchequer surplus of €4.1 billion was recorded in the first three months of the year. This compares to a surplus of €0.3 billion last year, an improvement of €3.9 billion. Excluding the once-off receipts arising from the CJEU ruling, the underlying fiscal position was in a surplus of €0.9 billion, €0.6 billion ahead of Q1 2024.
The Minister for Finance Paschal Donohoe said:
“I deeply regret the announcements in relation to tariffs announced by the US administration yesterday. Tariffs are economically destructive; they drive up the cost of doing business, put upward pressure on inflation, all the while creating uncertainty for investment and future growth.
"We will now act with the urgency that is required to assess the potential impacts on our indigenous and multinational sectors, and the Government Trade Forum is due to meet tomorrow to discuss these issues. In the meantime, Government will be engaging with our EU partners to review the current situation and the best way to respond.
"Yesterday’s announcements represent a marked acceleration in the recent trend toward global economic fragmentation. We now need to do all we can to maintain Ireland’s standing as a competitive and supportive environment for inward and indigenous investment and quality employment. The response, therefore, must be to focus on what we can control and influence.
"To that end, Government is putting in place measures that include addressing the major infrastructural bottlenecks in key strategic areas – energy, water, housing and transport. Investing in education, skills and training will also be key to maintaining the quality of our workforce.
"This is clearly an exceptionally uncertain period for our economy, but today’s figures show that, because of the careful management of our public finances, we are approaching the challenges ahead from a position of strength."
The Minister for Public Expenditure, NDP Delivery and Reform, Jack Chambers said:
“Today’s published figures demonstrate sustained high levels of investment in the delivery of public services at a critical time for our economy and for global trade. The actions announced yesterday by President Trump have the potential to cause serious damage to Irish, EU and global economies.
“As a country, we have overcome a series of challenges in recent years and now we approach this from a position of strength.
“We know we face significant challenges and economic uncertainty in the short and medium term. It is essential that at both a national and EU level we respond in a careful and responsible way. Equally critical is that we focus on enhancing our competitiveness, supporting diversification and innovation of our enterprise sector, and investing in our national infrastructure so we remain a highly attractive location for investment.
“My department takes a deliberate and planned approach to public spending that is focused on delivering our economic, social and climate ambitions – protecting our economy and enhancing living standards for our people.
“This week, I brought to Government a plan to revise and update the National Development Plan. This will result in increased investment, in transport, water and energy utilising additional funding available to us now including Escrow funds, share sales and the Infrastructure, Climate, and Nature Fund.
"This investment in infrastructure is putting in place the foundations for Ireland’s future competitiveness, which is crucial in the current economic climate. Our investment in infrastructure is delivering results and already this year an additional €0.6 billion has been invested under the Department of Housing, 120% above 2024 spend.”