Tax revenue soars to €17.2bn so far this year

Public finances recorded a surplus at the end of March of €200m, latest Exchequer figures published by the Department of Finance show.

This compares to a deficit of €4.2 billion recorded at the end of March 2021, representing an improvement of €4.3 billion.

The figures come on the back of continuing strong levels of income tax, VAT and corporation tax.

However, the figures show that on a 12-month rolling basis, there was a deficit of €3 billion.

On a cumulative basis, for the first three months of this year, income tax was up almost €1 billion or 16% to €6.8 billion. This is also 37% higher than the same period of 2019.

VAT returns were up €1.4 billion or just over 30% to €5.9 billion compared to the same period in 2021. This is 17% higher than the same period in 2019.

The surge in corporation tax is also explained as "increased profitability of a small number of companies in the ICT sector".

Tax revenue in total came in at €17.2 billion, some €4.2 billion higher or 32% ahead of the same period last year.

Commenting on the figures, the Minister for Finance, Paschal Donohoe said: "Today’s figures show that tax receipts remained strong in the first quarter of the year.

"While the annual comparisons are distorted due to a number of factors, the underlying trends are a positive sign of the strength of the domestic recovery. The exchequer returns for the first quarter also reflect the resilience of employees and employers, who responded over the last two years to the challenges of public health restrictions," Minister Donohoe said.

Labour party spokesperson Ged Nash said: "Today’s exchequer returns are impressive, even when we rate them against our performance on tax for the comparable quarter before the pandemic. In February, Labour presented a detailed €1.4billion package of measures to the Dail to help low and middle income households combat the ever-rising cost of living.

"Revised Central Bank forecasts published today warn that inflation this year will peak at 8%. This estimate may be on the conservative side.

"The Central Bank also confirms what we already know. That it is the lower paid, those who rely on the State for their modest incomes, older citizens and rural dwellers who are hardest hit by the rising cost of the basic staples.

“Good exchequer returns alone will not heat homes. Good and timely government decisions will," Deputy Nash said.