Strong income tax receipts for February 2024
Commenting on today’s exchequer figures for February, Tom Woods, Head of Tax at KPMG, says:
Tax receipts for February are 7% or €0.3 billion ahead of the same month last year with income tax revenues of €2.4 billion mainly driving the growth which is unsurprising as the labour market now stands at a record 2.71 million workers.
February is traditionally not a big month for VAT and corporation tax receipts. Next month will give a better indication of how the economy is shaping up in 2024. Economic data for March will also tell whether Modified Domestic Demand for Quarter 1 2024 recovered from the decline recorded in Quarter 4 of 2023.
The CSO’s February data shows that Irish inflation slowed to a two-and-a-half-year low of 2.2%. This is less than the 2.9% rate used by the Government to underpin Budget 2024. If this gap continues over the course of 2024, it will be interesting to see whether there will be an impact on tax receipts and government spending."
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Tom Woods
Partner, Head of Tax
KPMG in Ireland
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Sandra Farrell
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