January tax receipts see annual rise of 29% due to Apple tax funds

Reuters

Tax receipts collected in January were 29 per cent more than in the same month last year, with over two-thirds of the increase due to the receipt of a portion of the €14 billion Apple back-tax windfall, the Department of Finance said on Thursday.

The Government is drawing down back taxes from an escrow account over several months following the European Court of Justice ruling in September that its favourable tax treatment of the iPhone maker had been unlawful.

10.1 billion euros of tax was taken in last month, some €1.7 billion of which was from the escrow account. Without the Apple back-tax funds, tax receipts would have increased by 7 per cent, the department said.

A €3.6 billion surplus was recorded at the end of January, compared with a €2.3 billion surplus at the same point last year.

Tax receipts in January were €10.1 billion, up €2.3 billion on January last year.

Income tax receipts in January amounted to €3 billion, up by €0.1 billion (2.8 per cent);

VAT receipts of €4.1 billion, up by €0.2 billion (5.8 per cent);

Excise duty receipts of €0.5 billion were up €27 million (5.2 per cent) on January 2024;

Total gross voted expenditure in January amounted to €9.2 billion, €1.7billion (22.7 per cent) ahead of the same period last year;

Excluding the CJEU receipts, an Exchequer surplus of €1.8 billion was recorded in January.

Total gross voted expenditure to end-January amounted to €9.2 billion, up by €1.7 billion (22.7 per cent) on January last year.

Commenting on the figures, the Minister for Finance, Paschal Donohoe said: “Today’s figures show that tax revenues continued to demonstrate steady growth at the start of the year.  In particular, the ongoing expansion of income tax and VAT receipts are a positive indicator of the fundamental strength of our economy.

"However, there are clear risks ahead. As a small open economy, Ireland is particularly vulnerable to changes in the global economic environment.

"This underlines the importance of continuing to pursue a balanced and sustainable fiscal policy. That is why Government has committed to using the once-off proceeds from the CJEU decision to improve our stock of infrastructure, as well as investing windfall tax revenues in the Future Ireland Fund to prepare for future challenges.”