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Exchequer surplus of €2.8 billion recorded in year to the end of January

Overall, tax receipts were €7.5 billion in January.

AN EXCHEQUER SURPLUS of €2.8 billion was recorded in the year to the end of January.

January is an important month for tax receipts and the largest month for VAT receipts as it encompasses the Christmas trading period.

Overall, tax receipts were €7.5 billion in January, up 12% on an annual basis. 

However, the Department of Finance noted the latter tax head was inflated by a technical factor which boosted receipts. When this technical factor is adjusted for, total tax receipts increased by 9% compared to the same period last year.

The Department said the increase on last year was “driven by strong growth in income tax and VAT”. 

VAT receipts in January were €3.7 billion, up 18.5% or €0.6 billion on the same period in 2022.

However, the year-on-year comparison is inflated due to a technical factor whereby €0.2 billion of receipts withheld from December’s figures to fund potential repayments in January were returned to the Exchequer.

Excluding these receipts, VAT was up 12% or €0.4 billion on an underlying basis.

At €2.8 billion, income tax receipts remain robust, up over 9% on an annual basis.

The Department said this “reflects the continued resilience in the labour market”.

January is not a significant month for corporation tax and accordingly receipts of €50 million were collected, the Department said. 

“Today’s figures show that the strong momentum in tax receipts has continued into the start of this year,” Minister for Finance Michael McGrath. 

“The strength in income tax, in particular, is a positive signal of the continued resilience in the labour market with close to a record-low unemployment rate of just 4.4% recorded in January,” McGrath said.

“Indeed, the latest incoming data, including today’s figures along with the pickup in core retail sales and consumer sentiment suggest that the downturn in the domestic economy may not be as severe as previously anticipated,” he added. 

“It is crucial that we continue to use the positive momentum in the public finances to reinforce our fiscal buffers so that, in this uncertain global environment, we retain our capacity to effectively respond to future challenges.”

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    Mute Geoff Bateman
    Favourite Geoff Bateman
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    Feb 2nd 2023, 6:36 PM

    They will appear to give us all a bit of that back over the next 2 years to “buy” themselves another 5 years in office.Dont be fooled again…

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    Mute Pat Barry
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    Feb 2nd 2023, 6:43 PM

    @Geoff Bateman: Even if we were to get it all back I don’t think €560 is gonna do a lot for people.

    78
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    Mute ForrestG45
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    Feb 2nd 2023, 7:08 PM

    @Pat Barry: that’s €2.2k for a family of 4

    38
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    Mute Tomo
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    Feb 2nd 2023, 8:23 PM

    For January alone? And they say we can’t afford to build infrastructure to catch up with the rest of Europe. If we invested these surpluses alone in building public transport, we’d be so much better off.

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    Mute Shane McGrath
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    Feb 2nd 2023, 6:58 PM

    Homes: €700mil….

    Then Healthcare (not consultants): €700mil….

    Then Schools: €700mil???

    Any arguments?

    47
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    Mute PositiveMe
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    Feb 2nd 2023, 7:02 PM

    @Shane McGrath: what about the last 700mil

    24
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    Mute The next small thing
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    Feb 2nd 2023, 7:14 PM

    @Shane McGrath: Why not consultants, we need them more than other healthcare staff and have more vacancies there than in other areas? Anyway this money will cover the bill for the mother and baby homes scandals so there won’t be anything for other areas.

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    Mute Shane McGrath
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    Feb 2nd 2023, 7:22 PM

    @PositiveMe: New government jet?

    28
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    Mute Jason Dawson
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    Feb 2nd 2023, 7:30 PM

    @PositiveMe: that’ll get squandered as usual, unforseen over runs and such.

    33
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    Mute Dave Barrett
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    Feb 2nd 2023, 11:07 PM

    @PositiveMe: That’s set aside for the new jet

    5
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    Mute Ciaran
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    Feb 2nd 2023, 8:22 PM

    So.. when reports come out like this , you need to take it with a pinch of salt. It seems like a big growth number but what is / how normal is the base it was compared to? Jan 2022.. when businesses were barely up and running, with covid issues they were still recovering etc. Growth should be compared to a period of economic normality (2019) not to the abnormal economic performance of 2020 or 2021 (in including Jan 2022 in 2021). That will
    Give you a better indication of successful
    Growth.

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    Mute Fintan Stack
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    Feb 2nd 2023, 11:47 PM

    Primarily driven by EXCESSIVE household cartelled energy costs, 3 times the cost 4/5 years ago…

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    Mute Fintan Stack
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    Feb 2nd 2023, 11:43 PM

    The only chance they have of returning to government is to finally remove the temporary tax that is USC.

    https://m.independent.ie/irish-news/politics/irelands-most-hated-tax-universal-social-charge-30804972.html

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    Mute Dave Barrett
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    Feb 2nd 2023, 11:07 PM

    That will buy the new jet.

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    Mute Barbara Coleman
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    Feb 3rd 2023, 8:15 AM

    If they have all the surplus money then why don’t they make good the millions they stole from private pension funds to pay back the bankers. There are people who paid half their salary into private pensions to look after themselves that have not got a rise in same since 2009 !!

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    Mute Don Hogan
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    Feb 3rd 2023, 9:37 PM

    Use it to pay down €43,000 +/- per person share of national debt.

    5
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