TAX TAKE INCREASED in the month of May to €10.42 billion – 15.9% higher than last year – according to the latest Government figures. 

Corporation tax take accounts for a major boost in overall tax revenues, as €3.57 billion was collected in May, representing a 30.6% year-on-year increase. 

To date tax receipts of  €35.2  were taken in the first five months of this year, which is €2.1 billion more than what was collected by this time last year. 

VAT has also been a main tax heading, with receipts of €3.4 billion collected in May (a VAT due month). That figure is up 12.1% from last year, representing “strong growth”, according to the Government. 

Total gross voted expenditure in the first five months of this year stands at €38.8 billion, which is up €5.0 billion for the same period last year. 

An Exchequer surplus of €0.8 billion was recorded for the period up to the end of May, which represents an increase of €1.4 billion compared to the same time this year. 

Minister for Finance Michael McGrath said that May is an important month for tax revenues in the exchequer calendar, and that these figures reflect the “strength of the Irish economy”. 

He said that the growth in income tax revenues (up  5.2 % year-on-year for the month of May) is another positive sign. 

“With a record 2.71 million now at work in Ireland and incomes rising faster than the rate of inflation, living standards are improving again and consumer activity in our economy is being supported,” McGrath said. 

The Minister noted that the spike in corporate tax revenues is of note, after a sharp drop at the start of this year. 

“I would caution, however, that the significant volatility, in both directions, we have seen from month-to-month in this revenue stream is yet more evidence of the unreliability of these highly concentrated receipts, and the associated risks this brings to our public finances,” he said. 

McGrath said that the vulnerability that comes with relying on corporate tax revenues is one of the reasons that the Government is striving for balance and sustainability in its budgetary policy. 

The Government’s Summer Economic Statement is due in the coming weeks. 

The Minister for Public Expenditure Paschal Donohoe said that the gross of expenditure this year to date shows the Government’s “investment in the delivery of better public services and infrastructure”. 

He said that despite investments in improving public services and social protection rate increases, “emerging expenditure risks” mean that departmental spending needs to be carefully managed, across the board. 

He said that vigilance in spending will preserve the Government’s ability to be flexible when making decisions for Budget 2025. 

“Capital spending levels reflect the continued rollout of our National Development Plan, with end May expenditure of €3.6 billion showing a 52% increase in capital investment over the same period last year.

“The significant strides are evident in figures for Housing, Local Government and Heritage with capital expenditure of €1.2 billion showing an increase of €731 million or 155% year-on-year,” Donohoe added.