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2023’s tax take in line with forecasts

Figures from the Department of Finance show that the Exchequer took in just over €88 billion in tax last year – up 6% compared with 2022, and in line with projections set out in Budget 2024.

The department said that corporation-tax receipts grew by just over 5% to €23.8 billion – a rate of growth that it described as “more modest” than in recent years.

Income tax was up just over 7% to €32.9 billion, according to December’s Exchequer figures, while VAT receipts climbed by more than 9% to €20.3 billion.

Lower surplus

Total spending for the year came to €94.7 billion – almost 7% ahead of the 2022 total.

The higher spending figure meant that the Exchequer surplus of €1.2 billion for the year was around €1 billion lower than the budget-day forecast.

It was also lower than 2022’s surplus of €5 billion, with a transfer of €4 billion to the National Reserve Fund last year also affecting the figures.

‘Windfall’ receipts

The Minister for Finance Michael McGrath said that the tax figure reflected “the underlying strength” of the economy, especially the labour market.

“It must be acknowledged, however, that the budgetary surplus includes windfall corporation-tax receipts which, if excluded, would result in an underlying deficit,” he added.

“Indications are that pandemic-era surge in exports in a small number of sectors – which drive corporate profitability in Ireland – are now unwinding; this would mean more modest growth in corporation tax receipts in the coming years,” the minister stated.

The figures come days after a new minimum corporation-tax rate for large companies came into effect across the EU and in some other major economies.