TAX RECEIPTS IN Ireland amounted to €10.1 billion in January, marking an increase of €2.3 billion on January 2024 – including the once-off receipts arising from the Apple tax ruling. 

Excluding the September 10 Court of Justice of the European Union (CJEU) ruling, which resulted in tax receipts of €1.7 billion, January saw underlying tax revenues of €8.4 billion, up €0.6 billion (7.2%) on January the year prior.

A headline Exchequer surplus of €3.6 billion was recorded in January. Excluding CJEU receipts, the surplus stood at €1.8 billion, down by €0.4 billion on January last year.

Corporation tax in January, excluding figures relating to the Apple tax receipts, was “modest” at €90 million. January is not typically a significant month for corporation tax.

Income tax receipts were up 2.8% at €3 billion, and VAT receipts were up 5.8% at €4.1 billion. 

January’s VAT receipts include the Christmas trading period, making it the strong month of the year for VAT generally. 

Excise duties of €0.5 billion were up by €27 million, or 5.2%, on last year.

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

Minister for Public Expenditure Jack Chambers said that the month’s expenditure figures reflect the introduction of measures outlined in Budget 2025, including increases to social protection rates and increased investment in the health sector.

Minister for Finance Paschal Donohoe said that the expansion of income tax and VAT receipts are a “positive indicator” of the strength of the Irish economy – but “there are clear risks ahead”.

“As a small open economy, Ireland is particularly vulnerable to changes in the global economic environment,” Donohoe continued.

“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.”

Donald Trump’s return to office as President of the United States has lead to concerns internationally around trading. 

Earlier this week, Taoiseach Micheál Martin said the European Union needs to “act as one” in responding to any threat of tariffs levied by Trump.

After imposing tariffs on Mexico, Canada and China, Trump said late last week that he “definitely” intends to levy new tariffs on the European Union as well.

Experts have warned that Trump’s tariffs could upset the global economy.