October delivers another strong performance for tax receipts
Commenting on today’s Exchequer Tax Receipts for October, Tom Woods, Partner and Head of Tax in KPMG, says, “October is yet again another strong month for tax receipts. Total tax receipts for the year to date of €63.9 billion represent a 25% increase over the same period last year. The 15% year-on-year increase in income tax receipts reflects the continued strength of the Irish labour market. Corporation tax receipts to date this year are 69% higher than for the same period in 2021, driven mainly by the profitability of the ICT and pharma sectors. Clearly, this level of performance will be difficult to replicate in 2023, given the headwinds in the international and domestic economies.
The exchequer balance sheet for November will no doubt be impacted by the Government’s cost-of-living supports rolling out this month. However, as November traditionally yields the largest corporation tax receipts and further income tax receipts by self-employed individuals, this should help fund the roll-out of the cost-of-living measures.”
Exchequer balance improves by €14.7 billion
An Exchequer surplus of €7.3 billion was recorded from January to the end of October. This compares to a deficit of €7.4 billion recorded for the same period in 2021, an improvement of €14.7 billion. The increase reflects strong growth in tax revenues and a decline in expenditure due to the unwinding of Covid-19 supports.
Tax revenue to end-October stood at €63.9 billion, which was €13 billion ahead of the same period last year, driven by strong growth in income tax, VAT and, in particular, corporation tax.
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