Ireland’s tax receipts increase by 29%

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

While tax receipts are off to a promising start with 29% or €2.3 billion growth over last year, given the current global climate of political and economic uncertainties there could be challenges ahead for Ireland’s tax revenue. Ireland's corporation tax revenue may be impacted if certain US trade and tax policy proposals materialise. In addition, with near full employment and pressures on consumer spending, the rate of growth in VAT and Income Tax receipts could soften.

In response to these challenges Ireland must address domestic infrastructure bottlenecks and emphasise its two-way investment value to the US.  The Government's recently announced plans for a task force on international trade and a US economic advisory panel are proactive steps towards maintaining and enhancing the country's appeal as an investment destination.

January’s VAT receipts reflect buoyant Christmas trade with the VAT take for Christmas 2024 up 5.8% or €220 million on the previous year, due to higher spending and higher inflation in the run up to Christmas. 

Income Tax receipts are also up 2.8% or €82 million on last year in line with higher wages and a full labour market.

While January is not traditionally a significant month for corporation tax, receipts of €1.8 billion were recorded mainly comprising another tranche payment by Apple.