June’s Exchequer figures show that tax revenues in the first half of the year were €29.5 billion. That is €1.5 billion or over 5 percent higher than profiled and €2.6 billion up on the same period last year. The 12-month rolling Exchequer deficit stands at €12.3 billion.

The breakdown of tax revenues is as follows:

• Income tax receipts were €12.2 billion to end-June, €440 million or nearly 4 percent over profile and just under 16 percent higher than the first six months of 2020;
• VAT receipts to end June were strong at €7.2 billion, €335 million, or nearly 5 percent higher than profiled and nearly 22 percent higher than to end-June 2020; and
• Corporation tax receipts of €5.7 billion have been received, €450 million, or 8.5 percent ahead of profile.

Total gross voted expenditure to end-June amounted to €39.9 billion, €1.5 billion or 4 percent ahead on the same period in 2020 and €1.7 billion, or over 4 percent below profile. The underspend against profile is attributed to a number of factors, including the closure of construction sites earlier in the year.

Commenting on the figures, the Minister for Finance, Paschal Donohoe TD, said:

“Although we continue to borrow significant amounts of money in order to fight the pandemic, tax receipts to end-June show that we can look forward to the recovery with confidence. Income taxes and VAT, in particular, remain robust as businesses and consumers have shown remarkable adaptability and resilience. Despite continuing uncertainty, today’s figures show that we can look forward to a sustainable and broad based recovery”.

More information is contained in the Fiscal Monitor June 2021.