The latest Exchequer figures show the state of the public finances to be very strong ahead next month's Budget.
The figures published this evening by the Department of Finance show the Government underestimated its expected tax take by almost €1.8 billion for the first 10 months of the year.
The surge in income tax was added to by the estimated €750 million from the Revenue Commissioners special investigations into offshore accounts.
The figures also show the Government spent €1.35 billion less than predicted for the period.
The strength of the Government's coffers prompted the Labour Party to call on the Minister for Finance to reduce current tax levels on PAYE workers.
Finance spokeswoman, Ms Joan Burton, said there is now no excuse for the Minister for Finance not to introduce a Budget which will ease the burden on PAYE workers.
Ms Burton said: "It looks as though the Revenue may yet collect up to a billion this year from its special investigations."
"It is ironic that the Government which has denied the existence of a pot of gold from tax dodgers should be such a beneficiary of revenue," she said.
Fine Gael's deputy leader and spokesman on Finance, Mr Richard Bruton said the figures reveal that "the Irish public and Irish business remain capable of generating substantial income growth".
He said: "It also shows that this Government's tax regime with its frozen income tax thresholds and its very high rates of stamp duty and VAT is gobbling up a huge share of this income growth."
"Taxation in the year 2004 looks set to be approximately €3,000 higher per household than it was in 2003. This is a stunning increase in the tax take," he claimed.
The new Minister for Finance, Mr Brian Cowen, will deliver his first Budget next month.