Exchequer figures for January 2023 show tax revenues in January were €7.5 billion, 12 percent higher than last year. Contributing to this were strong VAT receipts of €3.7 billion, which include spending over the Christmas period, and were 12 percent more than January 2022 on an underlying basis. Income tax receipts remain robust, up 9 percent on an annual basis, with €2.8 billion collected. January is not a significant month for corporation tax, and this is reflected in the numbers, with €50 million collected, down €31 million on the same period last year. Capital gains tax receipts of €111 million were up €41 million on last year while the take from capital acquisitions tax was broadly in line with 2022.
Commenting on the figures, the Minister for Finance Michael McGrath said:
“Today’s figures show that the strong momentum in tax receipts has continued into the start of this year.
The strength in income tax, in particular, is a positive signal of the continued resilience in the labour market with close to a record-low unemployment rate of just 4.4 per cent recorded in January. Indeed, the latest incoming data, including today’s figures along with the pickup in core retail sales and consumer sentiment suggest that the downturn in the domestic economy may not be as severe as previously anticipated.
It is crucial that we continue to use the positive momentum in the public finances to reinforce our fiscal buffers so that, in this uncertain global environment, we retain our capacity to effectively respond to future challenges."
Read more about the Exchequer Returns.