Exchequer tax take up 4.6% to €4.57bn in July

August 4, 2023

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% – 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.

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

Overall 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.

“July is traditionally not a key month for corporation tax but receipts for the month are still up on last year indicating that profitability in the corporate sector continues to hold firm,” said Tom Woods, head of tax at KPMG.

“Total VAT receipts in the year to date at €13.2 billion are well on track to meet the Government’s €20.4 billion projected VAT take for 2023.

“Cumulative income tax receipts are also on target to achieve the forecasted €32.8 billion income tax take for the full year.”

“VAT receipts dipped slightly in May and there was more evidence of a decline in spending in the July figures,” said Peter Vale, tax partner at Grant Thornton Ireland. “While ahead of last year, the more muted VAT receipts likely reflect the impact of both higher interest rates and utility costs on discretionary spending power.

“Income tax receipts remain strong, running almost 9% instead of the same period in 2022, although there is a small decline in the rate of increase. While the economy remains close to full employment, the loss of some highly paid roles in the multinational sector may be reflected in the figures.”

Article Source: Exchequer tax take up 4.6% to €4.57bn in July – Adam Maguire – RTE

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