Ireland's Tax Revenue Up 6.1% to €2.2 Billion by May, Corporation Tax Rises 9.1%

Ireland has experienced a 6.1% increase in total tax collected by the State, amounting to an additional €2.2 billion, in the first five months of this year compared to the same period last year. This growth is primarily driven by strong corporation tax receipts and robust consumer spending, as detailed in the latest Exchequer Returns published by the Department of Finance.

Corporation tax collections saw a 9.1% rise, with €6.1 billion paid by large multinational companies, predominantly in the technology and pharmaceutical sectors. Value Added Tax (VAT) increased by 7.1% to €12.2 billion, signaling continued strength in consumer spending. Income tax also grew by 7.5% to €15.6 billion, reflecting a healthy jobs market.

Conversely, excise duty figures declined, a direct consequence of the government's temporary reduction in excise on petrol and diesel, implemented following recent nationwide fuel protests. Smaller tax categories, including stamp duty, capital gains tax, and capital acquisitions tax, also experienced decreases.

State spending reached €45 billion by the end of May, representing a 7.2% increase from last year but remaining 1.2% below forecast. This variance was largely attributed to slower-than-expected capital expenditure, while current spending, primarily on wages, exceeded projections. The Exchequer recorded a deficit of €2.3 billion, mainly due to government decisions to transfer funds to two long-term savings initiatives: the Future Ireland Fund and the Infrastructure, Climate and Nature Fund.