Exchequer returns June 2026
Commenting on today’s Exchequer figures for June, Orla Gavin, Head of Tax at KPMG, says:
Today’s Exchequer Returns underline the continued strength of Ireland’s tax base, with a 4.7% year on year growth in corporation tax again providing a significant boost to the public finances. June also marks a historic milestone, with the first Pillar Two tax payments and returns deadline in Ireland on 30th June. As a key corporation tax month, June points to a strong mid-year position as the Government prepares for Budget 2027.
The wider picture is encouraging, with growth across the main tax heads with income tax up 6.7% and VAT up 7.5% on last year, pointing to resilient employment, consumer activity and business investment. While the Irish labour market remains strong, there is no room for complacency. Budget 2027 should use this fiscal strength carefully and strategically to reinforce Ireland’s ability to compete for investment and talent, including through action on employment costs, housing delivery and infrastructure. Policy should ensure that, where jobs are being created, Ireland is positioned to win them.
While the mid-year position gives the Government flexibility, caution is still needed in a more uncertain external environment, where geopolitical instability, energy disruption and renewed inflation risks could weigh on households, businesses and investment. Against this backdrop, the Summer Economic Statement will be important in setting the parameters for Budget 2027, where the priority should be to balance near-term supports with sustained investment in Ireland’s competitiveness and living standards.
As Ireland commences its EU Presidency, the Government can also help shape a more competitive Europe by accelerating “tax decluttering” across EU directives to save taxpayers of all sizes an estimated €8 billion per annum in compliance costs.
