Another big tax boost for the Exchequer
Income tax continues to be a stellar performing, reflecting an economy with virtually full employment. Receipts of €17.4bn in this category are also up on last year, by €0.7bn.
Vat receipts of €11.6bn are up by €0.6bn, while corporation tax at €13.1bn is over 7pc, or almost €1bn, ahead of where it was at this time in 2024.
Expenditure continues to keep pace with tax receipts, however. Total gross voted expenditure in the first half of the year amounted to €50.bn, up by €3.8bn or 8.2pc on last year, and ahead of profile by €0.3bn.
Excluding the Apple tax receipts, an underlying Exchequer surplus of €1.2bn was recorded to end-June, compared with a surplus of €3.1bn in the first half of last year.
Tax receipts of €49.5bn were collected in the first six months of the year, up by €4.7bn, or over 10pc, and ahead of expectations by €0.5bn, with the overshoot largely due to corporation tax receipts.
The Minister for Finance, Paschal Donohoe, said: 'June is a key month for tax receipts. The steady performance across most revenue streams in the first half of the year is a positive sign of the strength of our economy as we navigate a deeply uncertain period.
'Corporation tax receipts in June have seen a sharp increase, which follows a sharp decline last month. This serves as a reminder of the extreme volatility in this revenue stream, and of its inherent unsuitability as a basis for permanent spending commitments.
'That is why we have established the Future Ireland Fund and the Infrastructure, Climate and Nature Fund to set aside some of this potentially temporary revenue to help further protect us in the future. Last month, Government transferred some €3 billion into the two funds, and when the remaining transfers are made towards the end of this year, there will be around €16 billion in the FIF and ICNF.
'We have also committed to investing the once-off proceeds from the Court of Justice of the European Union ruling in the critical areas of housing, water, energy and transport – these are the strategically important areas that will underpin economic growth into the future.
'As we draft the fiscal parameters for Budget 2026 and beyond, we will ensure that we approach it in a sustainable way, with an approach that protects our economy, supports and protects jobs, underpins our ability to invest in public services and keeps our public finances safe.'
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