TAX RECEIPTS OF €13.5 billion were collected in the first two months of this year, a 12.1% increase when compared to 2024 figures.

Today’s Exchequer returns show that tax receipts to the end of February amounted to €15.2 billion, which is up €3.2 billion (or 26.5%) when compared to the same month last year.

This surplus of €3.2 billion compares to a deficit of €0.1 billion in the same period last year.

However, when €1.7 billion Apple tax receipts arising from the Court of Justice of the European Union ruling last September are excluded, tax receipts amounted to €13.5 billion, an increase of €1.5 billion (or 12.1%) on February 2024.

Excluding the Apple tax receipts, an underlying Exchequer surplus of €0.2 billion was recorded, an improvement of €0.3 billion on last year.

Income tax receipts to end-February amounted to €5.7 billion, up by €0.3 billion, or 5.8%.

Corporation tax receipts meanwhile reached €1.1 billion, up 89% on the same period last year – this excludes the Apple payment but reflects a separate once-off payment.

Government spending in the first two months of the year amounted to €16.7 billion, an increase of €1.7 billion (11.1 per cent) on the same period last year but €0.2 billion (1.2%) behind the government’s forecast.

Finance Minister Paschal Donohoe remarked that “February is not generally a significant month for tax revenues, but the steady performance across most tax heads to date is a further positive reflection of the strength of our economy”.

He added that the March returns, which incorporate the first large corporate tax payments of the year, will provide a clearer indicator of the performance of the public finances.

“In an increasingly uncertain global environment, it is now more important than ever that we maintain our public finances on a positive trajectory,” said Donohoe.

Meanwhile, Public Expenditure Minister Jack Chambers remarked that his department “continues to work to drive effective delivery and value for money in the investment of public funds”.

“End February expenditure of €16.7 billion reflects the additional funding provided for critical areas across our society including increased Social Protection rates as well as health and education sector investment,” said Chambers.

“Capital spending is up almost 50% over the level seen at this time last year, underscoring this Government’s commitment to investing in infrastructure in areas like housing and transport.

“This increased spending improves people’s quality of life and enhances our national economic competitiveness.”

Peter Vale, Tax Partner at Grant Thornton Ireland, noted that income tax returns were “particularly strong”.

“The numbers reflect an economy now technically at full employment, consistent with the latest CSO figures,” said Vale.

He also noted that February is a “quiet month for VAT but the expectation is that receipts for the year should remain strong, fuelled by greater disposable income, the Budget 2025 spending package and falling interest rates”. 

“While February is normally a quiet month for corporation tax receipts, a one-off payment was received in February which boosted receipts significantly.

“An additional payment relating to the Apple case added further to the surplus.”

However, he cautioned that “tariffs and tax changes both have the potential to adversely impact our corporation tax receipts”.

“Higher tariffs could reduce the profits of Irish companies selling into the US, with a knock-on impact on corporation tax receipts here, in particular if the tariffs remain in place,” said Vale.

“We await any new specific tax measures to be announced by the new US administration. New US tax measures could also further impact corporation tax receipts, although we would not expect any dramatic drop.

“Overall, while another solid month for the Exchequer, a lot of uncertainty regarding future corporation tax figures in particular.”