Corporate tax revenues up 14% on same period last year

By Grainne Ni Aodha, PA

Corporate tax revenues have increased by 14 per cent compared with the same period last year, according to the Department of Finance.

A total of €58 billion in tax receipts was collected as of the end of July, representing an increase of €5.6 billion, or 11 per cent, on last year.

This includes €1.7 billion from the Apple tax money that was the feature of a dispute between the US tech giant, Ireland and the European Commission.

When the Apple tax money is excluded, tax revenues amounted to €56.2 billion, up by €3.9 billion, or 7.5 per cent, on last year.

Corporation tax receipts excluding the Apple tax money were up by €1.8 billion, or 14.1 per cent, on the same period last year.

While July is not usually a significant month for corporation tax revenues, receipts of €1.2 billion were collected, an increase of €900 million on July last year, which the department said highlighted the “exceptional month-to-month volatility” of the sector.

Income tax receipts until the end of July were up by €800 million on last year, or 3.9 per cent, and VAT receipts were up by €700 million, or 4.8 per cent.

Minister for Finance Paschal Donohoe said the tax revenue figures are “broadly” in line with what was expected at this point in the year, while corporation tax is “for now… well ahead of last year”.

“As I have said many times, we cannot assume these overperformances will continue indefinitely, particularly in the context of a deeply uncertain international trading environment,” he said.

“In June, Government transferred some €3 billion in excess corporation tax… into the Future Ireland Fund and Infrastructure, Climate and Nature Fund, and by the end of this year, there will be €16 billion invested to help us prepare for future challenges.”

Minister for Public Expenditure Jack Chambers said gross spending of €60.5 billion represented an increase of 8.6 per cent on this time last year.

“Expenditure to this point in the year reflects sustained investment in our public services and infrastructure,” he said.

“However, to effectively manage overall expenditure for the remainder of the year, it will be important that key spending departments such as health, education and housing remain within the agreed allocation for 2025.

“Of particular note in today’s figures is expenditure on capital infrastructure projects.

“Departments have spent almost €7.3 billion to end July, an increase of over 21 per cent year on year, underscoring Government commitment to infrastructure delivery to strengthen our economy and society for the longer term.

“This is reflected in the National Development Plan review recently published by my department, which provides funding certainty for departments for the next five years and will support targeted investment in the critical, growth-enabling infrastructure projects.

“Looking at expenditure beyond 2025, I will shortly publish a medium-term expenditure framework, a multi-year public expenditure planning exercise.

“It will complement the annual budgetary process and will be used to inform future requirements for existing services, and to assess the resource implications of future policy decisions over the period 2025-30.”