Impressive month for exchequer returns

Commenting on today’s Exchequer Tax Receipts for March, Tom Woods, Head of Tax at KPMG, says: “The performance of tax receipts for Quarter 1 of 2023 is impressive with an additional tax of €2.5 billion collected over record tax receipts for the same period last year.  

March has not traditionally been a big month for Corporation Tax receipts, but the trend over the last two years suggests that this is changing. The increase in total tax receipts in March 2023 alone was €1.2 billion, with corporation tax accounting for €1 billion. This further underscores the strength and importance of FDI to the economy. The Minister for Finance has opened a consultation on how the Pillar 2 minimum effective tax rate of 15 per cent will be implemented for those in scope companies, with effect from next year. This change on its own should increase corporation tax receipts further, but that increase is expected to be more than offset by changes under Pillar 1, where agreement is reached on its implementation.

Income tax receipts are up €0.2 billion for March. This indicates a buoyant labour market despite workforce adjustments in the technology sector.  

March is a VAT payment month and posted an additional €0.2 billion compared to last year. This increase could be attributed to the higher cost of goods and services rather than more consumption activity.”

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