THE AMOUNT OF TAX paid into the Exchequer has increased by 6% on last year, with tax revenues to the end of July amounting to €59.6 billion. 

Income tax continues to bolster the public finances, with income tax receipts amounting to €21.9 billion, up by €1.5 billion (7.5%). 

The Exchequer results, published today, show VAT receipts of €16.3 billion were up by €1.4 billion (9.7%). 

It is noted in the release that the reduced rate of VAT for food businesses and hairdressers which took effect from 1 July will not be reflected until September.

The golden goose that is Ireland’s corporation tax receipts continue to give, with €15 billion recorded, 4.7% higher on last year. 

However, government expenditure is continuing to rise – with total gross voted expenditure to end-July amounting to €64.9 billion, €4.5 billion (7.4%) ahead of the same period last year.

In the month of July, €1.3 billion was collected in corporation tax, up by €0.1 billion on last year. This includes payments arising from the 15% ‘top up’ tax for large companies. 

Ireland’s resilient economy 

Taoiseach Micheál Martin described today’s Exchequer results as “good figures” that point to a “robust economy”.

He said the income tax, VAT and corporation tax figures gives Ireland a “certain degree of resilience, notwithstanding the very uncertain world out there that we are living in”.

Martin said Budget 2027 will focus on the cost of living. He said the government plans to reduce the burden of income tax, and look at the cost of childcare and the cost of disability.

He described housing as the “single greatest social issue” facing the country, adding that there will be a “consistent focus” on it.

Tánaiste and Minister for Finance, Simon Harris, also said today’s figures are further evidence of the resilience of our economy, welcoming the strong growth in income tax. 

He said this reflects a labour market that is running at full employment “despite all the external challenges we are facing”.

“In a deeply uncertain world, it is more important than ever that we maintain a sensible and sustainable approach to fiscal policy,” he added. 

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Budget 2027 will strike a “careful balance”, with a package that will “help workers keep more of their earnings, while continuing to invest in our public services and critical infrastructure”. 

“At the same time, we will strengthen Ireland’s resilience by running surpluses investing in our sovereign wealth fund, and continuing to build the Infrastructure, Climate and Nature Fund,” he added. 

The Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation, Jack Chambers addressed the issue of spending increases, stating that the government is investing significant additional resources across Ireland’s public services.

“In line with the Summer Economic Statement, Budget 2027 will provide for further investment in public services and infrastructure within a sustainable overall expenditure framework.

“Our priority will be to translate that investment into real and lasting improvements for people and communities across the country,” said the minister.