Tax receipts up 10% in July

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

July is a VAT payment month with over €3.2 billion collected, up approximately €300 million or 10% on July 2023.  This is encouraging as it shows the steady moderation of inflation over the year has not impacted VAT receipts which have continued to grow ahead of inflation in each of the VAT payment months to date this year.

Income Tax receipts in July also continued an upward trend, up €200 million or 7% on the same month last year.  The further rise in income tax receipts reflects an economy continuing at close to full employment which generates upward wage pressures.

The Exchequer has collected €52.3 billion in tax to date this year which means that more than half of the Government’s tax target of €97.5 billion for 2024 is already achieved with the biggest tax months yet to come. This puts the Government in a good position to deliver a budgetary package of €1.8 billion in additional spending and €1.4 billion in tax measures as set out in the Summer Economic Statement.