Exchequer returns – June 2022

Commenting on the latest Exchequer returns, Tom Woods, Partner and Head of Tax at KPMG Ireland says that the strength of the Irish economy continues to generate high tax receipts resulting in a surplus of €4.2 billion for the year to date.

"This is a remarkable performance compared to the deficit of €5.3 billion recorded to end-June 2021, an improvement of almost €9.5 billion. The ending of Covid-19 supports has clearly played a role in the overall improved Exchequer position. It appears that the challenges to the global economy have yet to impact the multinational and domestic sectors in Ireland".

Tax revenue for the first half of 2022 stands at €36.9 billion, which was €7.4 billion or 25 percent ahead of the same period last year. The increase is driven by very strong growth in Corporation Tax, VAT, and income tax.

Corporation tax receipts for the first six months of the year now stand at €8.8 billion, which is just over €3 billion or over 50 percent ahead of the same period last year. June is traditionally the second-largest month for corporation tax payments.

Cumulative VAT receipts stand at €9.1 billion, an increase of €1.9 billion, or 26 percent, in the same period in 2021. There was however a 48 percent drop in VAT collected in June 2022 of €116 million compared to VAT receipts of €225 million collected in June 2021.  As June is a non-VAT payment month and the figures are relatively small, it’s still too soon to say whether consumption in the domestic market is being impacted by global events.

The Government has also signalled that Budget Day for 2023 will now take place on Tuesday 27^th September, two weeks early than the tradition of holding the Budget on the second Tuesday in October.   

The Summer Economic Statement for 2023 was also published by the Government today. Budget 2023 will provide for an overall package of €6.7 billion composed of additional public spending amounting to €5.65 billion and taxation measures amounting to €1.05 billion.

If you have any queries on the above, please contact Tom Woods, Head of Tax. We'd be delighted to hear from you.