Government tax revenue surged to €10 billion in January as another tranche of the Apple tax money and VAT receipts related to the Christmas period boosted the total.
Exchequer returns, published by the Department of Finance, show the Government collected €10.1 billion in tax last month – €2.3 billion (29.3 per cent) ahead of the same period last year.
However, most of the increase (€1.8 billion) was due to once-off receipts relating to the high-profile European court ruling last September. The State has now collected €12.8 billion of the €14 billion accruing from the Apple tax case.
January is not a significant month for the business tax and receipts came to just €90 million, up from €57 million last year.
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In contrast, January is generally the strongest month of the year for VAT as it encompasses the Christmas trading period.
Receipts from the sales tax came to €4.1 billion, which was nearly 6 per cent up on the same month last year. Income tax, the Government’s main revenue source, generated €3 billion in January, €82 million (2.8 per cent) ahead of the same month last year.
“The ongoing expansion of income tax and VAT receipts are a positive indicator of the fundamental strength of our economy,” Minister for Finance Paschal Donohoe said.
“However, there are clear risks ahead. As a small open economy, Ireland is particularly vulnerable to changes in the global economic environment,” he said, without referring to the threat of tariffs which US president Donald Trump has pledged to impose on imports from the European Union, which include €67 billion-worth of produce from Ireland.
[ Trump says tariffs on EU will ‘definitely happen’ but UK could avoid themOpens in new window ]
“This underlines the importance of continuing to pursue a balanced and sustainable fiscal policy,” he said.
“That is why Government has committed to using the once-off proceeds from the CJEU (Court of Justice of the European Union) decision to improve our stock of infrastructure, as well as investing windfall tax revenues in the Future Ireland Fund to prepare for future challenges,” Mr Donohoe said.
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Peter Vale, tax partner at Grant Thornton Ireland, said: “While the introduction in the US of new tariffs or a wide-ranging tax reform plan could unquestionably impact future corporation tax receipts, absent the detail it is difficult to make any predictions.”
Tom Woods, head of tax at KPMG, warned that Ireland’s corporation tax revenue may be impacted if certain US trade and tax policy proposals materialise.
The department’s figures showed total State spending for January was €9.7 billion. Of this, gross voted expenditure stood at €9.2 billion, €1.7 billion (22.7 per cent) ahead of January 2024. An exchequer surplus of €3.6 billion was recorded in January, compared to a surplus of €2.3 billion in January 2024.
“January expenditure figures reflect the introduction of measures introduced as part of Budget 2025 – the increases to Social Protection weekly rates, the expansion of the school meals scheme and the increased health sector investment are among the areas where Budget 2025 funding is supporting improvements in living standards and public services,” Minister for Public Expenditure Jack Chambers said.
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