Workers paid an extra €200 million in income tax in April, boosting the Government’s revenue to €4.7 billion, according to official figures.
Exchequer returns published on Friday show that Revenue collected €4.7 billion in taxes in April, €300 million or 6.4 per cent more than during the same month last year.
Workers paid €3.2 billion in income tax last month, €200 million or 5.9 per cent more than in April 2023, the returns show. Experts noted that the income tax boost reflected continued strong employment in the Republic.
Tom Woods, head of tax at accountants KPMG, said the increase in workers’ contribution to the Exchequer reflected a “dynamic” labour market. He pointed out that while monthly jobless rates have risen marginally, the Republic “continues to operate at near full employment”.
Mr Woods added that the near €11.2 billion in income tax collected so far this year, a 7 per cent increase on the same period in 2023, bore that out.
Peter Vale, tax partner at Grant Thornton, agreed that employment remained strong and continued to boost income tax. He also predicted that VAT should remain strong this year as interest rate cuts were likely to put more cash in shoppers’ pockets.
April is not “VAT month” – when businesses are due to pay the sales tax – but Mr Vale pointed out that receipts had grown 6.3 per cent to €7.45 billion to date this year.
The returns, published on Friday, show the State collected €31.7 billion in gross revenue in the four months to the end of April, €1.1 billion or 3.6 per cent more than during the same period in 2023.
The Government spent €32.9 billion over the same period, leaving it with a shortfall of €1.2 billion. However, a Department of Finance statement pointed out that the State had a surplus of revenue over spending of €3.6 billion over the 12 months to the end of April.
Government collected €24.8 billion in taxes from workers and businesses during the first four months of the year, €600 million more than during the period to the end of April 2023, according to the figures.
Mr Woods pointed out that the Government appeared confident 2024 would be another record year for tax collection. “Four months into the year, tax receipts of €24.8 billion are robust, but the performance of corporation tax receipts over the coming months will be key to determining whether the Government’s forecast is achievable.”
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