Income Tax Receipts Reach €5.3 Billion in Early 2024
Strong income tax receipts, buoyed by a record 2.71 million people employed, have bolstered the Government’s finances in the early months of the year. Income tax generated €5.3 billion in January and February, up 5.7% from the same period last year. This positive trend reflects the robustness of the labour market.
Total tax receipts reached €12 billion by the end of February, indicating a potential record tax year for the government. VAT generated €4.3 billion, up 4.8%, while corporation tax receipts totaled €583 million, down almost 10% year-on-year.
Despite fluctuations in corporation tax, which hit a record €24 billion last year, the exchequer showed a deficit of just €100 million at the end of February, an improvement of €2.4 billion from last year.
Minister for Finance Michael McGrath noted that while the growth in tax revenues aligns with forecasts, it’s premature to draw conclusions about the year’s trajectory, especially with key corporation tax payment months ahead.
Tom Woods of KPMG emphasised that March figures will offer a clearer picture of the economy’s performance in 2024, particularly regarding domestic demand. Maintaining sustainable public finances is crucial for effectively navigating external uncertainties and ensuring resilience in the face of challenges.
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