From Department of Finance; Department of Public Expenditure, NDP Delivery and Reform
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Once-off receipts drive October tax performance; Expenditure figures highlight Government’s careful approach to public spending – Ministers Chambers & Donohoe
Tax receipts of €8.2 billion were collected in October, an increase of €3.1 billion (61.3 per cent) on last year. The tax-take in October includes a large increase in corporation tax receipts arising from the ruling of the Court of Justice of the European Union (CJEU) on 10 September.
On a cumulative basis, tax revenue amounted to €76.3 billion in the year to end-October. This was €9.9 billion (14.9 per cent) ahead of the same period last year, with more than half of the annual increase driven by corporation tax.
Income tax receipts of €2.8 billion were collected in October, up by €0.2 billion (8.9 per cent on last year). On a cumulative basis, income tax receipts amounted to €27.6 billion in the first ten months of the year. This was €1.9 billion (7.3 per cent) ahead of the same period last year and reflects the continued strength in the labour market.
October is not a VAT-due month and, accordingly, receipts were modest. On a cumulative basis, VAT receipts of €18.3 billion are up €1.3 billion (7.7 per cent) on the same period last year; this reflects solid consumer spending growth.
Corporation tax receipts in October were €2.3 billion (178.7 per cent) ahead of the same month last year, driven by a tranche of one-off receipts related to the CJEU ruling. Around a quarter of the total liability from the CJEU ruling has been transferred to date. When these receipts are excluded, corporation tax receipts were down on October last year; this is due to a timing factor. On a year-to-date basis, corporation tax receipts of €21.4 billion are €5.6 billion (35.9 per cent) ahead of the same period last year.
Excise duties of €0.7 billion were collected in October, up by €0.2 billion (36.8 per cent) on the same month last year. On a cumulative basis, excise receipts of €5.3 billion are up by €0.7 billion (15.5 per cent) on the same period of 2023, reflecting the withdrawal of policy measures.
Overall, tax revenues in the year to end-October amounted to €76.3 billion, €9.9 billion (14.9 per cent) ahead of the same period last year.
Total gross voted expenditure to end-October amounted to €80.9 billion, €8.7 billion (12.1 per cent) above the same period in 2023 and €3.2 billion or 4.1 per cent above profile.
An Exchequer surplus of €1.3 billion was recorded to end-October. This was an improvement of €2.1 billion on the same period last year.
Commenting on the figures, the Minister for Finance Jack Chambers said:
“The October tax performance shows steady growth across most revenue streams, with the exception of corporation tax, which is distorted by the receipt of the first tranche of receipts arising from the CJEU ruling of September 10th.
"As I said on Budget Day, it is essential that we do not use this once-off revenue to fund day-to-day spending commitments. The Departments of Finance and Public Expenditure, NDP Delivery and Reform, are progressing the development of the framework for the allocation of windfall revenues, which is expected to be brought to Government in the first quarter of next year.
"More generally, we must continue to pursue a budgetary strategy that is carefully balanced between addressing the pressures of today and ensuring fiscal sustainability over the longer term. Last month, Government made the first transfer from the Exchequer to the new Future Ireland Fund, setting aside a portion of the windfall tax receipts to help us prepare for future challenges. By the end of next year, there will be some €16 billion in the two new investment funds.”
The Minister for Public Expenditure, NDP Delivery and Reform, Paschal Donohoe said:
“October’s fiscal monitor figures highlight the government’s careful and planned approach to public spending, with almost €81 billion spent year-to-date. This funding is providing key supports to public services, improving living standards and investing in infrastructure.
"Continued delivery of the National Development Plan is evident in the 31.3% year-on-year growth in capital expenditure. This shows an increased investment in the delivery of more housing and the building of more schools.
"Budget 2025, which was announced on the 1st of October, will continue to build on the investment outlined in recent Budgets, which have delivered improvements across sectors with expanded public services for a growing population. An increase in current expenditure figures this month also reflect the October Bonus double social protection payment which will benefit pensioners, carers and those with disabilities.”