Irish Government Revenue Reaches €49.2 Billion by May End, €2.3 Billion Deficit Recorded
The Irish Government collected €49.2 billion in revenue by the end of May, with income tax and VAT contributing nearly €28 billion, an increase of €2 billion from last year. Despite this, overall revenue was down €700 million, and a €2.3 billion deficit was recorded due to increased spending and a drop in excise duty.
The Irish Government collected nearly €28 billion in income tax and Value Added Tax (VAT) during the first five months of the year, an increase of almost €2 billion compared to the same period in 2023, according to recently published figures.
Overall, the State's total revenue reached €49.2 billion by the end of May. This figure represents a €700 million decrease compared to the corresponding five-month period in 2023, as detailed in the exchequer returns on State income and spending released on Thursday.
Income tax and VAT, which are levied on consumer spending, collectively contributed €27.85 billion to the total, marking a €1.9 billion increase from what workers and shoppers paid during the same five months last year. Corporation tax, imposed on company profits, also saw a rise of €516 million, reaching €6.2 billion by the end of May.
Conversely, excise duty experienced a decline of almost €100 million, settling at €2.5 billion by the end of May. The Department of Finance attributed this decrease potentially to government tax cuts on diesel and petrol, which were announced in response to widespread protests over rising motor fuel prices in April. Excise duties are collected on motor fuel, alcohol, and tobacco. Government spending escalated to €51.5 billion during the five-month period, resulting in a State deficit of €2.3 billion as of May 31.