Corporation tax up 33% last month as fiscal watchdog warns of increased spending
Ireland's corporation tax receipts rose by 33% in August, contributing to a total of €17.8 billion for the year so far. However, the Irish Fiscal Advisory Council has warned that the government is overspending and relying too heavily on volatile corporate tax revenue.
Why it matters
The reliance on multinational tax revenue poses a long-term fiscal risk to the Irish economy, especially if global corporate tax environments shift.
CORPORATION TAX RECEIPTS of €2.8 billion were collected in August, a 33% jump on the same month last year.
The latest exchequer returns, published by the Department of Finance, show that corporate taxes are up 8.3% on last year to €17.8 billion.
This is partly down to a new 15% rate of tax for multinationals with a turnover of more than €750 million. This resulted in an additional €1.2 billion in corporation tax payments to the end of August.
Total tax revenues collected so far this year amount to €66.3 billion, up by €3.9 billion on last year.
Income tax receipts amounted to €25 billion, up by €1.8 billion, while VAT receipts increased by €1.1 billion to €16.3 billion.
Total government spending to end of August totalled €83.6 billion.
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