Irish tax receipts continue to grow as fallout from Trump tariffs looms

Exchequer surplus reached €4.1bn in the first quarter — boosted by €3bn in Vat and €1.94bn in corporation tax in March alone

Finance minister Paschal Donohoe. Despite Ireland's continued positive exchequer returns,  the global trade environment was upended on Wednesday by Donald Trump's tariffs. Picture: Stephen Collins

The Government recorded a surplus of €331m during March, a 4% increase compared to last year, as higher Vat returns offset a drop in income tax receipts, new exchequer returns data shows.

During March, the Government took in just over €3bn in Vat, an increase of €188m, while income tax receipts fell by €23m to €2.56bn. Corporation tax increased by €88m year-on-year to just under €1.94bn.

Overall, during the first three months of the year, the exchequer recorded a surplus of €4.1bn — compared to the €300m surplus recorded during the same period in 2024.

However, that surplus drops to around €900m if the money the Government received from the Apple tax case ruling in September is excluded.

The continued positive exchequer returns come as the global trade environment was upended on Wednesday night when  US president Donald Trump announced tariffs on countries around the world including a 20% tariff on EU member nations.

The EU Commission president Ursula von der Leyen has said that they are preparing further countermeasures against the US tariffs.

Ireland, as a small open economy that relies on trade and is the European home for US multinationals, is significantly exposed to a trade war between the US and EU. It could have a significant impact on corporation taxes and foreign direct investment as well as increasing prices for consumers.

Total tax revenue for the January to March period stood at €23.6bn which is €3.5bn ahead of last year. However, when once-off tax revenues arising from  the Apple ruling are excluded, underlying tax receipts of €21.9bn were up by €1.8bn.

Income tax receipts of €8.2bnin the quarter were, up by €289m, while revenue from corporation tax stood at just over €3bn, up €607m year-on-year.

Vat receipts in the first quarter of the year stood at just over €7.6bn — up by €487m.

The total amount collected in excise duties came to €1.5bn while stamp duty receipts rose to €437m.

Gross revenue at the end of March stood at €31.3bn — an increase of 22% year-on-year. Non-tax revenue and capital resources for the year so far stood at €3.3bn which, along with appropriations-in-aid of €4.5bn, brought total other revenue to €7.7bn.

Total expenditure during the first three months of the year stood at €27.2bn.

Exchequer debt service expenditure as of the end of March reached €1.3bn — down €300m compared to the same period in 2024.