Tax receipts hit €64.1bn to end-August, Exchequer figures show

Eva Osborne

Tax receipts for the year to end-August reached €64.1 billion, up €4.4 billion (7.3 per cent) on the same period in 2024, according to new Exchequer figures.

When once-off revenues of €1.7 billion linked to a European court ruling are excluded, underlying receipts came to €62.4 billion, a 4.4 per cent increase year-on-year.

Income tax receipts rose by 10.6 per cent in August to €2.9 billion, bringing the year-to-date total to €23.2 billion – up €1 billion (4.7 per cent) on 2024.

VAT receipts, which are not due in August, brought in €0.4 billion last month. Total VAT receipts now stand at €15.2 billion, up 4.8 per cent on the same time last year.

Corporation tax receipts totalled €2.1 billion in August – down €1.6 billion from the same month last year due to what the Department called a "base effect." Adjusting for once-off EU-related receipts, the year-to-date total stands at €16.4 billion, marginally ahead of 2024 by €0.2 billion (1.1 per cent).

Non-tax revenues came to €2.4 billion, up €1.9 billion year-on-year, largely due to interest payments following last year's CJEU judgment.

Expenditure to end-August reached €68.6 billion, a €5 billion (7.8 per cent) increase on 2024 and slightly ahead of profile.

A headline Exchequer surplus of €3.2 billion was recorded, down from €3.8 billion last year. Excluding the once-off EU receipts, the State ran a €0.1 billion deficit – a €3.9 billion swing on last year.

Minister for Finance, Paschal Donohoe, said: “Today’s figures have provided a reminder of the vulnerability in our corporation tax base, with a steep fall this month – while this had been anticipated after a very strong August last year, corporation tax is now only marginally ahead of 2024 (when once-off CJEU receipts are excluded).

"Other revenue streams, particularly income tax and VAT receipts, have been performing steadily and are broadly in line with expectations for this point in the year, reflecting the underlying strength of our economy."

Minister for Public Expenditure, Jack Chambers, said: “The Exchequer return figures for August show expenditure of €68.6 billion. Spending has increased by 7.8 per cent on this time last year.

"The figures released today show that expenditure is ahead of the plans set out by Departments, but overall, this remains a variance of less than 1 per cent.

"Expenditure to this point in the year has supported continued investment in our public services and infrastructure and is delivering on key government priorities including increased weekly Social Welfare payments and investment in our health services.

“Capital spending continues to grow strongly compared to last year, with an overall increase of 21.8 per cent, in line with this Government’s ongoing commitment to improving infrastructure across the country.

"One of the clearest examples is in housing, where capital investment has increased by 30 per cent over 2024 levels. We need to ensure the momentum to tackle the housing challenge is sustained and that we deliver long-term solutions."