The Department of Finance has published the latest Annual Taxation Report. The report highlights the concentration of tax receipts within certain sectors of the Irish economy, particularly the Information and Communication Technology (ICT) sector. Overall receipts for 2022 amounted to €83.1 billion. This is the highest level ever with the ICT sector accounting for around 35 per cent of corporate tax receipts and around 10 per cent of income tax revenues.
Commenting on the report, Minister for Finance, Michael McGrath TD, said:
“The Annual Taxation Report is a welcome contribution to the policy debate, particularly as we consider changes to tax policy in advance of Budget 2024. The report highlights that, while the headline figures are undoubtedly positive, there are still real vulnerabilities beneath the surface. This provides a timely reminder of the importance of taking the appropriate policy decisions today to secure the future of the public finances.
The Government’s budgetary strategy outlined in the Summer Economic Statement sets out a pathway that will ensure we maintain our public finances on a stable trajectory, continue to invest in our public services while actively addressing the structural risks in our tax base, particularly around volatile corporation tax revenue. These are the fiscal objectives that I will have in mind as we draft Budget 2024.”
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