From Department of Finance; Department of Public Expenditure, NDP Delivery and Reform
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Tax receipts of €7.4 billion were collected in August, €2.1 billion (40.2 per cent) more than was collected in August 2023.
Income tax receipts of €2.6 billion were collected in August, up by €0.1 billion (3.3 per cent) on last year. On a year-to-date basis, income tax receipts to end-August stood at €22.2 billion, up by €1.4 billion (6.9 per cent) on 2023, reflecting the continued strong employment and wage growth.
August is a non-VAT -due month, with receipts relatively modest. On a year-to-date basis, VAT receipts of €14.5 billion are ahead of end-August 2023 by €1.0 billion (7.5 per cent).
There was a significant increase in corporation tax receipts in August, with receipts of €3.7 billion up by €1.9 billion (108.7 per cent) on the same month last year. However, the bulk of this increase likely reflects a technical timing factor which depressed receipts earlier in the year. On a year-to-date basis, corporation tax receipts of €16.3 billion were up €3.6 billion (28.4 per cent) on the same period last year.
Excise duties of €0.5 billion were collected in August, up by €45 million (9.5 per cent) on the same month last year. In the year-to-date, excise receipts of €4.1 billion were up by €0.5 billion (14.0 per cent) on the same period last year; this mainly reflects the phasing out of cost-of-living policy measures.
Overall, tax revenues in the year-to-date were €59.8 billion at end-August, €6.7 billion (12.6 per cent), ahead of last year; while annual increases were recorded across most tax headings, corporation tax receipts stand out.
Total gross voted expenditure to end-August amounted to €63.6 billion, €7.3 billion (12.9 per cent) above the same period in 2023 and €2.6 billion or 4.3 per cent above profile.
An Exchequer surplus of €3.8 billion was recorded to end-August. This was an improvement of €4.1 billion on the same period last year, although the comparison is skewed by the transfer of €4 billion to the National Reserve Fund in the first half of 2023.
Commenting on the figures, the Minister for Finance, Jack Chambers T.D. said:
“The tax figures published today are further evidence of the resilience of our economy.
“The most notable feature of the August performance was the substantial increase in corporation tax receipts. While much of the increase in August relates to a technical timing factor, and offsets a decline earlier in the year, in the year-to-date this revenue stream is now well ahead of last year.
“However, as I have cautioned previously, these receipts are clearly subject to exceptional volatility. Put simply, there is no guarantee that these revenue streams will remain at this level indefinitely, and it is crucial that we do not build permanent spending commitments on the back of these.
“With the two new investment funds – the Future Ireland Fund and the Infrastructure, Climate and Nature Fund – we are setting aside a portion of windfall tax receipts to prepare for future fiscal challenges.
“At the same time, Government will continue to calibrate a budgetary policy that balances the need to address the pressures of today and while, at the same time, maintaining our public finances on a sustainable trajectory over the medium-term.
“Budget 2025, which Minister Donohoe and I will present to the Oireachtas on October 1st, will be framed on this basis.”
The Minister for Public Expenditure, NDP Delivery and Reform, Paschal Donohoe T.D. said:
“Expenditure in the year-to-date has demonstrated Government’s continued investment in our public services. €63.6 billion has been invested so far this year to achieve our key objective of providing for high quality public services and better societal outcomes under a fiscally sustainable expenditure strategy. €7 billion of this has been made available in capital expenditure to support infrastructure and investment in a growing population and economy.”
“Year-to-date expenditure includes provision for the implementation of measures from last year’s Budget, including Social Protection rate increases, reductions in childcare costs through the National Childcare Scheme and supports for primary and post-primary students.”
“In the lead up to Budget 2025, I have been engaging with my colleagues across Government and stakeholders about their ambitions for expenditure policy. Budget 2025 will see a total of €105.4 billion in expenditure made available to build on and improve public services and key infrastructure requirements. I look forward to presenting Budget 2025 with Minister Chambers on October 1st.”
ENDS