Corporation tax receipts dip in September

Despite the drop, receipts from corporations this year remain 23.3%  ahead of last year

Minister for Finance Jack Chambers TD and Chief Economist at the Department of Finance, John McCarthy. Picture: Sam Boal/Collins Photos

Corporation Taxes collected last month fell by €237m or 13.3% compared to the amount collected in the same month last year.

According to the Exchequer Returns figures for September published on Thursday, Corporation Taxes of €1.5bn were collected last month with €17.8bn collected so far this year, a 23.3% increase on the same nine-month period last year.

The total tax take so far this year stands at €68.2bn led by income taxes, Vat and corporation taxes.

The Department of Finance reported an Exchequer surplus of €5bn to the end of September. This compares to a surplus of €1.1bn in the same period last year. However, the annual comparison is distorted by the transfer of €4bn to the National Reserve Fund last year. 

September is a VAT-due month with receipts of €3.4bn collected, ahead of the same period last year by €0.2bn. VAT receipts to the end of September amounted to €17.9bn, 7% ahead of last year.

Excise duties of €0.5bn were collected in September, up by €27 million (5.5%) on the same month last year. Year-to-date, excise receipts of €4.6bn are up by €0.5bn (13%) on 2023, largely reflecting the phased withdrawal of cost-of-living policy measures.

Commenting on the returns Minister for Finance Jack Chambers said the tax figures largely continue a pattern of robust growth seen throughout the year, and provide further evidence of the fundamental strength of the economy.

"Of course, the stand-out feature in the tax performance has been corporation tax," he said. "Even as receipts in the year to date remain well ahead of initial expectations, the decline this month reminds us of the volatility associated with this revenue stream, and why this Government has acted to mitigate our exposure to these receipts through the establishment of the Future Ireland Fund and the Infrastructure, Climate and Nature Fund."

In his Budget speech on Tuesday, Minister Jack Chambers said his department forecasts tax revenue to amount to €105.7bn this year, an increase of €13.6bn on the Government's Spring forecast, mostly attributable to corporation tax receipts and the €14bn revenue apple following the Court of Justice of the European Union judgement.

In their analysis, the Irish Fiscal Advisory Council (IFAC) said the data shows spending overruns continue to mount. "At the end of September, current spending was €2.5bn higher than originally forecast. Capital spending is also higher than forecast by €0.4bn.

IFAC said health spending overruns have already breached the €1.5bn mark overrun that was forecast for the full year in the Summer Economic Statement.