Exchequer returns - March 2024

Commenting on today’s exchequer figures for March, Tom Woods, Head of Tax at KPMG, says:

"Tax receipts for Quarter 1 are €349 million ahead of the same period last year driven by strong income tax, VAT, and excise receipts.  However, corporation tax receipts for Quarter 1 are down €800 million mainly due to a decline in corporation tax paid in March of €700 million.   Before 2022, March was not a significant month for corporation tax receipts but payments of €2.5 billion in 2023 and €1.5 billion in 2022 bucked the trend. 

While today’s corporation tax results are down on last year, it’s too early in the year to determine whether this is a broadly based trend or just a timing issue relating to the performance of some large contributors. 

The combined performance of income tax, VAT and excise receipts for Quarter 1 which are €1.2 billion ahead of last year, reflect real strength in the economy, pointing to both the buoyant labour market and robust consumer demand.

Excise duty receipts for Quarter 1 are up €183 million on last year.  Receipts under this tax head are likely to increase in the months ahead as duties that were reduced under Cost-of-Living support measures are phased back in.  The first increase took effect on Monday and the next increase is due to take effect on 1^st August."