With November being the most important month of the year for tax receipts, the Minister for Finance noted that the recent November Exchequer figures indicate that “[t]he ongoing strength in income tax, in particular, is a positive signal of the continued momentum in the labour market”. The Exchequer surplus stood at €6.2 billion, on a 12-month rolling basis. However, it is concerning that if the recent windfall corporation tax receipts are excluded, there is an underlying deficit of approximately €5 billion on a 12-month rolling basis.
November is a VAT-due month, it is the deadline for self-employed income tax payments, and the month in which the largest payments are made for corporation tax. Total tax receipts for the month of November amounted to €13.6 billion.
Corporation tax receipts in November amounted to €5 billion, which is 25 percent higher than November last year. However, some of these receipts are expected to be once-off in nature and will not reoccur next year.
Income tax receipts of €4.4 billion in November are 16 percent ahead of November 2021 and reflect continued increases in earnings as well as also the strength of self-employed income.
VAT receipts for the month of November are up 19 percent on the same period last year, with almost €3.1 billion being collected, reflecting the recovery in consumer spending.
Commenting on the figures, the Minister stated:
“Our economy has recovered remarkably well from the shock caused by the impact of Covid-19. This is due to the careful management of our public finances during what was a testing period for the country.
I fully appreciate that for so many the rising cost of living, and in particular, the cost of energy is a real challenge. The Government has and will continue to help citizens and businesses deal with these rising costs but we must ensure that the support we provide is sustainable and does not put our public finances on an unsustainable path. By delivering a budget surplus and putting aside these potentially transient corporation tax receipts it will ensure that we are in a position of strength to deal with unforeseen challenges that may yet be around the corner as well as the more longer-term challenges that we need to make progress on too.”
See the Fiscal Monitor November 2022 for further details.