Exchequer returns up €1bn in July driven by higher Vat and income tax receipts 

Income tax receipts hit €3.3bn in July, up €400m. File picture: Damian Coleman

Exchequer revenue increased by more than €1bn during July alone driven by higher Vat and income tax returns, as a deficit of €600m has been recorded so far this year due in part to higher transfers to the Government’s two wealth funds.

The latest exchequer returns for July show that so far this year, gross total revenue in the year to the end of July reached €73.6bn — an increase of €800m year-on-year.

Of this, tax revenue stood at €59.6bn, 2.8%, or €1.6bn, ahead of last year. However, this period last year included €1.726bn resulting from the Apple tax case ruling the year prior, and if these figures are excluded, tax revenue is actually up nearly 6% or €3.4bn.

Non-tax revenue and capital resources for the period stood at €3.2bn, while appropriations-in-aid, which is other revenue generated by Government departments, stood at €10.8bn, bringing total other revenue to €14bn.

In July, the exchequer took in €9.6bn in tax receipts, up €1.1bn compared to the same month last year, with the largest increase being seen in Vat.

In total, €3.8bn in Vat was generated in the month, up €600m, or 17.5%. So far this year, Vat receipts have totalled €16.3bn — up €1.4bn.

The next largest monthly increase was seen in income tax receipts which hit €3.3bn, up €400m, or 12.7%. This brings the total so far this year to €21.9bn — up €1.5bn.

The last major category, corporation tax, took in €1.3bn during the month, an increase of €100m. So far this year, corporation tax is up €700m to €15bn.

Motor tax receipts as of the end of July have totalled €584m, up €4m, while customs receipts were up €14m to €362m.

Some tax categories saw declines in July.

Excise duty during the month declined by €8m year-on-year to €600m. On a cumulative basis, excise receipts of €3.5bn are down on last year by €200m, which can largely be attributed to the Government’s decision to introduce temporary rate cuts for fuel in response to the surge prices after the outbreak of the war in the Middle East.

Stamp duty receipts were also down €12m in the month, to €180m. The total taken in at the end of July stood at €998m, down by €43m.

Capital gains tax receipts were up 11.8% in the month to €44m. However, it is still down €56m year-on-year, with €452m taken in as of the end of July.

Capital acquisitions tax amounted to €196m so far this year, down by €106m compared to last year.

On the other side, expenditure during the first seven months of the year stood at €74.2bn, of which gross voted expenditure accounted for €64.9bn, up €4.5bn, while non-voted expenditure accounted for €9.2bn, up by €1bn.

Non-voted capital expenditure in the year to the end of July stood at €5.1bn — up €1.5bn year-on-year due to higher transfers to the Future Ireland Fund (FIF) and Infrastructure, Climate and Nature Fund (ICNF).

This brings the exchequer deficit to €600m. This compares to a surplus of €4.1bn last year — a decrease of €4.7bn. 

However, when the receipts from the Apple tax case ruling are excluded, a decline of €1.4bn was recorded in the underlying exchequer balance, which was attributed to a higher transfers to the Future Ireland Fund and Infrastructure, Climate and Nature Fund.

Non-voted capital expenditure in the year to the end of July stood at €5.1bn — up €1.5bn year-on-year due to transfers to these funds.