Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
SURGING CORPORATION TAX take sees Ireland’s tax receipts for the year to the end of July coming in at €58 billion, up nearly 11% on last year.
While July is not ordinarily a significant month for corporation tax, €1.2 billion was collected last month, a sharp increase of €0.9 billion on July last year.
The Department of Finance said this “exceptional month-to-month” increase shows the “volatility” of this highly concentrated revenue stream.
Despite the country being on course for another record tax year, the government have been at pains to temper expectations ahead of October’s budget in light of the fallout of US tariffs.
Minister for Finance, Paschal Donohoe said in a statement that today’s Exchequer’s figures are “broadly speaking, where we expected to be at this point in the year: the clear exception is corporation tax, which, at least for now, is well ahead of last year”.
“As I have said many times, we cannot assume these overperformances will continue indefinitely, particularly in the context of a deeply uncertain international trading environment,” he said.
Speaking about the future “challenges” the country might be facing, he said there will be €16 billion set aside.
Though tax receipts collected to end-July are up by €5.6 billion on the same period of 2024, the government has ruled out any cost-of-living measures in this year’s budget.
Donohoe has also said there will have to be “trade-offs” if the government is sign off on the VAT reduction for the hospitality sector. There have been concerns that this could mean little or no tax cuts for workers in this year’s Budget.
Income tax receipts in July of €2.9 billion were up by 0.1 billion (1.8%) on July last year. On a cumulative basis, receipts of €20.3 billion are up on last year by €0.8 billion (3.9 %).
The Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation, Jack Chambers said the Exchequer return spending figures for July show gross spending of €60.5 billion, a spending increase of 8.6% on this time last year.
In order to manage overall expenditure, it will be important that key spending departments such health, education and housing remain within the agreed allocation for 2025, he said.
Speaking about tariffs on pharmaceuticals yesterday, US President Donald Trump said they could go as high as 250%, despite the EU claiming that it had agreed a 15% tariff cap on medicines.
Speaking to CNBC, Trump referenced Ireland’s strength in the pharmaceuticals sector, and indicated that new tariffs on imported pharmaceuticals and semiconductors will be announced soon – potentially in the coming week.
He said that other countries “make a fortune with pharmaceuticals”,
“They make our pharmaceuticals in China and Ireland,” he said, adding that upcoming tariffs on imported pharmaceuticals could reach 250%.
Asked about the comments, Taoiseach Micheál Martin said the United States has gained an increasing share of the European and Asian pharmaceutical market.
“The companies are global powers. Those companies are really globally strong companies because of their presence in Europe. Ireland being one of the countries that they’re present in. But Ireland has added value and strength to those companies.
“And I would say to the President he needs to factor that into the equation, and those companies will be damaged and undermined if such policies were to bear fruit,” he said.
He added that he has been in touch with the European Commission President Ursula Von Der Leyen who has confirmed that the 15% is what’s been negotiated.
To embed this post, copy the code below on your site
have your say