From Department of Finance; Department of Public Expenditure, NDP Delivery and Reform
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Tax receipts of €8.4 billion were collected in September, demonstrating relatively muted growth of €0.1 billion (1.3 per cent) on last year, due to a decline in corporation tax for the month. For the quarter as a whole, however, receipts of €23.4 billion are well ahead of Q3 last year, by €3.0 billion (14.4 per cent), with robust growth across the key tax heads but a particularly large increase in corporation tax.
Income tax receipts of €2.6 billion were collected in September, up by €0.2 billion (8.7 per cent on last year). Cumulative income tax receipts now stand at €24.8 billion, ahead of last year by €1.6 billion (7.1 per cent).
September is the second-last VAT-due month of the year, and growth was steady, with receipts of €3.4 billion up on September 2023 by €0.2 billion (5.0 per cent). On a cumulative basis, VAT receipts of €17.9 billion are ahead of last year by €1.2 billion (7.0 per cent).
Corporation tax receipts saw a drop in September, with receipts of €1.5 billion down by €0.2 billion (13.3 per cent). On a cumulative basis however receipts of €17.8 billion remain significantly ahead of end-September 2023, by €3.4 billion (23.3 per cent), driving the majority of the Q3 tax revenue growth.
Excise duties of €0.5 billion were collected in September, up by €27 million (5.5 per cent) on the same month last year. Year-to-date, excise receipts of €4.6 billion are up by €0.5 billion (13.0 per cent) on 2023, largely reflecting the phased withdrawal of cost-of-living policy measures.
Overall, tax revenues in the year-to-date were €68.2 billion, and are ahead of last year by €6.8 billion (11.0 per cent). Growth has been strong across most key revenue streams, but, despite a decline in September, corporation tax is the stand-out feature.
Total gross voted expenditure to end-September amounted to €72.1 billion, €7.7 billion (12 per cent) above the same period in 2023 and €2.9 billion or 4.2 per cent above profile.
An Exchequer surplus of €5.0 billion was recorded to end-September. This was an improvement of €3.9billion on the same period last year, though the annual comparison is distorted by the transfer of €4 billion to the National Reserve Fund in 2023.
Commenting on the figures, the Minister for Finance, Jack Chambers T.D. said:
“The tax figures published today largely continue a pattern of robust growth that we have seen throughout the year, and provide further evidence of the fundamental strength of our economy.
Of course, the stand-out feature in the tax performance has been corporation tax. Even as receipts in the year to date remain well ahead of initial expectations, the decline this month reminds us of the volatility associated with this revenue stream, and why this Government has acted to mitigate our exposure to these receipts through the establishment of the Future Ireland Fund and the Infrastructure, Climate and Nature Fund.
Budget 2025, which Minister Donohoe and I presented to the Oireachtas on Tuesday, sets out a balanced and sustainable pathway for our public finances with allows us to continue to invest in our public services and infrastructure without relying on ‘windfall’ tax revenues.”
The Minister for Public Expenditure, NDP Delivery and Reform, Paschal Donohoe T.D. said:
Today’s figures show Government’s deliberate and planned approach to public spending, with over €72 billion invested in the year to date, delivering our economic, social and climate ambitions. This funding is providing key supports to our public services, supporting living standards and investing in infrastructure.
Continued delivery of the National Development Plan is reflected in capital expenditure of 39 per cent higher than at this point last year, reflecting the provision of housing, public transport, strong and reliable public utilities, healthcare and schools now and for the future. This is seen in the year on year growth in capital expenditure in the Department of Housing, Local Government and Heritage and other areas.
Increased current expenditure figures year on year includes implementation of measures from Budget 2024, with increased provision for Education sector, Childcare measures and Social Protection rates. Budget 2025, announced this week, will build on the investment of recent Budgets, which have delivered lasting improvements across sectors with expanded public services for a growing population.
ENDS