October tax increase driven by one-off corporation tax receipts

The October Exchequer figures show that tax revenues of €76.3 billion were €9.9 billion, or 14.9 percent ahead of the same period last year. More than half of the increase was driven by corporation tax receipts of €21.4 billion, which are €5.6 billion, or 35.9 percent, ahead of last year. October corporation tax receipts include one-off receipts arising from the ruling of the Court of Justice of the European Union (CJEU) in the Apple State-aid case last September. 

Reflecting the continued strength in the labour market, income tax receipts for the year-to-October of €27.6 billion are up €1.9 billion, or 7.3 percent, ahead of the same period last year. On a cumulative basis, VAT receipts of €18.3 billion are up €1.3 billion, or 7.7 per cent, on the same period last year reflecting solid consumer spending growth. 

An Exchequer surplus of €1.3 billion was recorded to the end of October. This was an improvement of €2.1 billion on the same period last year. 

In addition, the Parliamentary Budget Office has released a new data visualisation, Fiscal Monitor October 2024. This visualisation provides a high level analysis of spending and tax revenue trends to the end of October 2024. 

Commenting on the figures, the Minister for Finance Jack Chambers said: 

“The October tax performance shows steady growth across most revenue streams, with the exception of corporation tax, which is distorted by the receipt of the first tranche of receipts arising from the CJEU ruling of September 10th. 

As I said on Budget Day, it is essential that we do not use this once-off revenue to fund day-to-day spending commitments. The Departments of Finance and Public Expenditure, NDP Delivery and Reform, are progressing the development of the framework for the allocation of windfall revenues, which is expected to be brought to Government in the first quarter of next year. 

More generally, we must continue to pursue a budgetary strategy that is carefully balanced between addressing the pressures of today and ensuring fiscal sustainability over the longer term. Last month, Government made the first transfer from the Exchequer to the new Future Ireland Fund, setting aside a portion of the windfall tax receipts to help us prepare for future challenges. By the end of next year, there will be some €16 billion in the two new investment funds.”