The Government’s coffers are bursting again after it was announced the taxman pulled in almost €20billion in the first three months of this year.
This is an increase of 15%, or nearly an extra €3.5billion, on 2022, and once again it is being driven by booming corporate tax returns from multinationals operating here.
Corporate tax receipts were up a massive 71% in the first quarter, contributing €3.2billion of the €19.7billion Q1 tax total, while VAT was up 16%, bringing in €6.8billion and income tax contributed an extra 8% with €7.4billion added to the pot.
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Welcoming the results, Finance Minister, Michael McGrath said: “Today’s figures confirm strong momentum in our economy during the first quarter of the year.
“The strength of income tax shows that the labour market remains resilient, while VAT receipts suggest consumer spending remains reasonably solid.
“Once again, corporate tax receipts have surprised on the upside, though my officials estimate that around half of the corporate tax take is unlikely to be permanent.
“It is, of course, essential that windfall corporation tax receipts are not used to fund permanent expenditure.
“This is why I transferred €4 billion to the National Reserve Fund in February – there is now €6 billion in the Fund.
“I will also seek government approval in the coming weeks for a longer-term fund to meet the costs of an ageing population and other pressures that we know will arise in the future.
“Finally, the Government will publish the Stability Programme Update on 18th April, setting out my Department’s updated economic and fiscal assessment.”
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