A TOTAL of €83.1 billion in tax was collected by the Exchequer last year, new figures published by the Department of Finance show. 

This marks an annual increase of 22%, or €14.7 billion, on 2021. 

As tax revenues grew last year, an Exchequer surplus of €5 billion was recorded. This compares to a deficit of €7.4 billion in 2021. 

“The end-2022 Exchequer figures show a large headline surplus was recorded last year,” Minister for Finance Michael McGrath said. 

“This reflects a number of factors, including robust income tax and VAT receipts, both of which reflect the strength of the post-pandemic recovery in demand and employment. The phasing out of Covid-related expenditure is another reason for the surplus last year,” McGrath said. 

Corporation tax receipts ended last year at €22.6 billion, ahead of the previous year by €7.3 billion (48%). 

The Finance Minister said the by far, the most important factor behind the surplus is the “strength of corporation tax revenue”. 

“Receipts from this source have doubled since just before the pandemic,” he said. 

However, if these receipts were excluded, the Government would instead be facing a significant deficit, McGrath said. 

“This is why Government has acted to mitigate this vulnerability by transferring part of this windfall to the National Reserve Fund to rebuild our fiscal resources.”

Income tax receipts last year amounted to €30.7 billion, up 15% on 2021. This is consistent with the post-pandemic recovery in employment. 

VAT receipts came in at €18.6 billion last year, up €3.2 billion (over 20%) on 2021. 

Minister for Public Expenditure Paschal Donohoe said: “Looking forward the 2023, Revised Estimates have provided gross expenditure of over €91 billion.

“This will allow us to fund our public services to meet the challenges arising from Covid and the war in Ukraine, while also providing key investment to enhance public services, our education and healthcare systems, and our infrastructure including housing and transport networks.”