Exchequer returns – September 2022

Commenting on today’s Exchequer Tax Receipts for September, Tom Woods, Partner, and Head of Tax in KPMG says “cumulative corporation tax receipts for the year to date are now 71% ahead of last year". This suggests that the Government is on track to collect a projected record €20 billion in corporation tax in 2022, albeit that the biggest corporation tax-payment month of November is yet to come.

VAT receipts for the year to date are €15.28 billion, ahead of pre-pandemic VAT receipts of €12.3 billion for the same period in 2019.  Despite the fall in consumer confidence, VAT receipts appear to be benefiting from price inflation.

Cumulative income tax receipts are €21.4 billion, 16% ahead of last year, in line with trends of record employment rates reported by the CSO.”

An Exchequer surplus of €7.9 billion was recorded to end-September. This compares to a deficit of €6.2 billion recorded to end-September 2021, an improvement of €14.1 billion. The increase reflects strong growth in tax revenues and a decline in voted current expenditure due to the unwinding of Covid-19 supports.

Tax revenue to date this year is €57.9 billion, which was €12 billion or 26.2% ahead of the same period last year. The increase is driven by strong growth in income tax, VAT and in particular, corporation tax.