Exchequer returns - April 2025
Commenting on exchequer figures for April, Olivia Lynch, Head of Tax Markets at KPMG, says:
Income tax was the top performer in April with receipts of €3.5 billion, up 7.5% compared to April 2024. This growth is reflective of a buoyant Irish labour market operating at full employment. Cumulative tax receipts for the year to date are 8.3% ahead demonstrating continued strength and resilience in the economy.
April typically sees lower activity in Corporation Tax receipts, so all eyes will be on May which is a better gauge of economic activity as it is one of the key months for corporation tax payments. The coming months will be crucial to see whether Irish tax yields remain stable amidst the global economic uncertainty.
The Government has made a €3.9 billion downward adjustment to forecasted tax receipts for 2025 in today’s Stability Programme Update. This adjustment reflects the global economic challenges stemming from tariff uncertainty and the potential impact across all the tax heads.
The Government will have a key role in enhancing Ireland’s competitiveness and supporting businesses navigate the changing trade environment.
