The latest Exchequer returns reveal that the overall tax receipts are 8.5% higher compared to last year, primarily driven by VAT and income tax increases. However, when removing the influence of Apple’s tax settlement, the underlying surplus lags by €0.1bn. Despite this, VAT collections rose to €11.4bn, attributed to robust employment and consumer expenditure, while income tax collected was also up. In contrast, corporation tax revenues showed a significant drop, raising concerns among financial experts regarding future business performance.
The increase in VAT was good news. This reflects continued strong levels of employment and the fact that consumers are continuing to spend.
The dip in corporation tax receipts in May, down just over €1bn, is unexpected, given the steady performance of corporation tax payments to date this year.
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