Corporate tax in October of nearly 1 billion euros ahead of target

Public finances continued to recover last month, according to the latest figures from the Exchequer of the Ministry of Finance.

There was an Exchequer deficit of 7.438 billion euros recorded at the end of October, an improvement of just over 4 billion euros compared to the deficit recorded for the same period last year.

Tax revenues remain above expectations, especially corporate tax.

Overall, tax revenue at the end of October was above the target of 3.8 billion euros or 8.1%, and is up almost 20% from the same period of the year last.

Expenses are nearly 2.5 billion euros, 3.5% behind the target.

A corporate tax of 1.494 billion euros was collected in October, nearly a billion euros ahead of target and below what the ministry describes as “larger payments than profiled payments of the life sciences sector ”, which is unlikely to be repeated in the years to come.

Just under € 300 million in corporate tax revenue relates to tax settlements.

VAT receipts are ahead of the target by 785 million euros or 6.6%, driven by the recovery in consumer spending.

An unlikely consequence of Brexit is also showing up in the figures, with customs revenue at the end of October almost doubling to € 403 million.

Goods from the UK, which are not produced there, are now subject to customs duties.

“Corporate tax revenue in October was higher than expected, once again illustrating the inherent unpredictability and volatility of this revenue stream,” Finance Minister Paschal Donohoe said in a statement. communicated.

“Despite the additional clarity that now exists with international tax reform, there is still a high level of uncertainty about its impact on Ireland,” he added.

Minister Donohoe said the best form of defense against any negative impact is to have “strong and stable” public finances.

“The 2022 budget set a framework within which we can reduce the deficit and restore public finances, while continuing to invest heavily in public services, especially infrastructure,” he said.

Public Expenditure and Reform Minister Michael McGrath said gross voted spending at the end of October stood at more than € 67 billion, nearly € 2 billion ahead of levels. expenses for the same period last year.

“Current expenditure amounts to nearly 62 billion and a half euros, of which nearly 82%, or 51.1 billion euros, concerns the expenditure of the ministries of Education, Social Protection, Health, Higher and Complementary Education, Research, Innovation and Science. ,” he said.

“This reflects the government’s continued focus on protecting the most vulnerable in society and prioritizing basic social services from the impacts of Covid-19,” said Minister McGrath.