State Tax Revenue Rises 4.2% to €27.9 Billion by April, Driven by Income Tax and VAT

Ireland's tax collection has seen a 4.2% increase so far this year, reaching €27.9 billion between January and April, according to the Department of Finance. This represents an increase of €1.1 billion compared to the same period in 2025, excluding payments related to the Apple tax case from the previous year. The growth is attributed to a robust jobs market and healthy consumer spending.

Income tax receipts rose by 5.7% to €12.3 billion by the end of April, indicating continued strength in employment. Value Added Tax (VAT) also increased by 4.5% year-to-date, reflecting strong consumer activity. Conversely, excise duties saw a 1.8% decline, while corporation tax increased by 8.6% during the period, although April is not a key month for VAT or corporation tax payments.

Despite the rise in tax revenue, the Exchequer balance experienced a €4.2 billion decline in the first four months of the year. This was primarily due to significant payments made to the Government's two long-term savings funds. Concurrently, government spending increased by 8.9% to €36 billion in the same period.

The increase in spending was partly driven by extended fuel allowance payments in April, designed to assist social welfare recipients with rising fuel costs, and an additional pension payment day in April due to timing issues. The Irish Fiscal Advisory Council has expressed criticism regarding Ireland’s rapid growth in expenditure, with forecasts predicting a 7.2% rise this year, significantly outpacing most other EU countries.