Exchequer tax take is up and continuing largely positive

Almost €6.57 billion in tax was received by the Exchequer in July, up €303m (4.6%) on the same month of last year.

Figures from the Department of Finance show Corporation Tax take continuing to surge, with €333m taken in the month.

That is €101m – or 43.3 per cent – more than in July 2022.

Income tax receipts were €217m (8.7%) higher year-on-year, at €2.7 billion.

Meanwhile €2.93 billion was received in VAT, up €136m (4.9%) on July 2022.

It means that almost €47.8 billion has been received by the Exchequer so far this year – up €4.34 billion (10%) on the first seven months of 2022.

Corporation tax take is €1.87 billion (20.7%) higher so far this year at almost €10.9 billion.

Income taxes are €1.48 billion (8.8%) higher at €18.22 billion, while €13.2 billion has been received in VAT; up €1.36 billion (11.5%).

However there has been a decline in some other tax categories in the first seven months of the year. Stamp duties are currently €289m (26.4%) lower year-on-year at €806m.

Also, capital gains tax take is down €105m (21.6%) to €382m, while capital acquisitions taxes are down €16m (10.2%) at €141m.

Overall though, the Exchequer recorded a €700m surplus in the year to the end of July, compared to a €5 billion surplus in the same period of last year. The Department of Finance said the bulk of this difference was due to the transfer of €4 billion to the National Reserve Fund.

On a 12-month rolling basis, the Exchequer surplus was also at €700m.

However when one-off factors – including what is estimated to be “excess” corporation tax take – are excluded, the department says there is an underlying deficit of around €6 billion.

The figures show that total Exchequer expenditure stood at €58.7 billion by the end of July.

Gross voted expenditure represented €49.2 billion of that – up €3.9 billion (8.6%) year-on-year.

Non-voted expenditure made up the remaining €9.5 billion – which is €1.6 billion (20.2%) more than a year ago.

Article by: Adam Maguire, Business Journalist, RTE.ie.