The Department of Finance has published the Fiscal Monitor January 2024. Exchequer figures for January 2024 show tax revenues in January were €7.8 billion, nearly 5 percent higher than last year. Contributing to this were strong VAT receipts of €3.8 billion, which include spending over the Christmas period, and were 4 percent more than January 2023. Income tax receipts remain steady, up 2.9 percent on an annual basis, with €2.9 billion collected. January is not a significant month for corporation tax, and this is reflected in the numbers, with €57 million collected, up €7 million on the same period last year. Capital gains tax receipts of €96 million were down €16 million on last year while the take from capital acquisitions tax was broadly in line with 2023 with €19 million collected.
Commenting on the figures, the Minister for Finance Michael McGrath said:
“Today’s figures show that aggregate tax receipts continued to display steady growth at the start of the year, with tax revenues increasing by almost 5% compared to January of last year. This is a solid start to the year, and is a clear and welcome demonstration of the continuing resilience of our economy, notwithstanding the undoubted headwinds in the global economy. These figures come on the heels of data published by the CSO last week, which show a welcome moderation in the rate of inflation and that unemployment remains low at just 4.5 per cent.
It is essential that we remain vigilant to the risks to our public finances: the headline tax revenue figures for 2024 will, as has been the case in recent years, be heavily reliant on volatile corporation tax revenues, which showed considerable volatility last year. The first significant month for corporation tax revenue is expected to be March. I and my officials will be closely monitoring trends in tax receipts as they develop over the coming months.
A priority for me in the months ahead is to establish the Future Ireland Fund and the Infrastructure, Climate and Nature Fund. These funds will be essential to protecting the sustainability of the Exchequer over the years ahead and work is continuing on the legislation that will underpin them.”
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