Latest Exchequer figures show that tax revenues to the end of February were €10.1 billion, a 20 per cent increase on the prior year and 10 per cent higher than the same period in 2020. Income tax receipts of €4.7 billion were recorded, a 17 percent annual increase, while VAT receipts were up 10 percent compared to 2020 figures. The Exchequer surplus at the end of February was €0.9 billion, compared to a deficit of €0.7 billion in the same period last year. The 12-month rolling balance records a deficit of €5.7 billion.
Commenting on the latest figures, Minister for Finance, Paschal Donohoe said:
“Today’s figures show that tax receipts continue to record strong growth in the opening months of this year. While the annual comparisons are flattered due to a number of factors, the underlying trends are a good signal of the continued momentum in the domestic economy. The strong income tax performance reflects the ongoing recovery in the labour market, alongside continued wage increases in sectors less affected by the pandemic, while the significant increase in VAT receipts is driven by the rebound in consumer spending.
"While recent trends are positive, we cannot become complacent. It is crucial that we continue to make progress along the road to recovery. Budget 2022 set a framework within which we can reduce the deficit and restore the public finances, while continuing to invest heavily in public services, particularly in capital infrastructure."
Read the Government’s full press release for more information.
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