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Exchequer turnaround as tax take surges

Figures from the Department of Finance show that there was an Exchequer surplus of €5 billion in the first seven months of 2022, as tax receipts continued to surge.

The surplus comes after a deficit of €5.7 million at the same stage in 2021, with lower spending due to the unwinding of COVID-19 supports also contributing to the improvement.

The tax take for the first seven months of the year was €43.5 billion – more than 23% ahead of the same period last year. The rise was mainly due to strong growth in income tax, VAT, and corporation tax.

Income tax receipts of €2.5 billion during July were 19% ahead of the same month last year, and are running 17% ahead of the first seven months of 2021.

VAT comparison ‘flattered’

Increases in profits at multi-national companies meant that €9 billion of corporation tax was taken in in the first seven months of the year – €3 billion higher than in the same period last year.

July was a VAT-due month, adding €2.8 billion to the end-July total of €11.9 billion. This is 23% ahead of the same period last year, but the department says that the effect of COVID-19 measures on spending in the early part last year has flattered the comparison.

The cost of paying off the national debt was €3.2 billion in the seven-month period – down almost 2% compared with a year earlier.