{"id":531491,"date":"2026-07-03T18:07:10","date_gmt":"2026-07-03T18:07:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/531491\/"},"modified":"2026-07-03T18:07:10","modified_gmt":"2026-07-03T18:07:10","slug":"strong-tax-returns-of-e50bn-strengthen-governments-budgetary-position-the-irish-times","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/531491\/","title":{"rendered":"Strong tax returns of \u20ac50bn strengthen Government\u2019s budgetary position \u2013 The Irish Times"},"content":{"rendered":"

Another strong month of corporation tax receipts in June has strengthened the Government\u2019s finances ahead of the budget<\/a>.<\/p>\n

Overall, the latest exchequer numbers show the Government took in a total of \u20ac50 billion in tax revenue across all headings in the six months to the end of June, up \u20ac574 million or 1.2 per cent on the same period last year.<\/p>\n

However, when once-off receipts arising from the Apple tax ruling<\/a> in 2024 are excluded, total tax receipts were up on last year by \u20ac2.3 billion or 4.8 per cent.<\/p>\n

\u201cDespite all the challenges that have been thrown at the Irish economy this year the budgetary data that we\u2019re publishing today does show an economy that remains in a good position,\u201d Minister for Finance Simon Harris said.<\/p>\n

Strong income tax receipts pointed to an economy at full employment with rising wages, he said.<\/p>\n

\u201cI think we can also see that the Government intervention in relation to energy prices was also correct,\u201d he said, noting the fuel supports had kept a lid on inflation.<\/p>\n

Despite repeated warnings about the potential volatility of multinational profits, corporation tax receipts have continued to grow, with half-year exchequer returns, published on Friday, showing the tax generated \u20ac7.5 billion in June, up nearly \u20ac100 million or 1.3 per cent on the same month last year.<\/p>\n

June is a key month for the business tax as receipts generally reflect companies with financial years ending in December which include several big players in the tech sector here including Google, Meta, Microsoft and Intel.<\/p>\n

This year will also see the first \u201ctop up\u201d payments arising from the new global minimum rate of 15 per cent, agreed as part of an Organisation for Economic Co-operation and Development (OECD)<\/a> agreement on international tax in 2021.<\/p>\n

[\u00a0Ireland\u2019s budget plan has a name: \u2018Sure it\u2019ll be grand\u2019Opens in new window<\/a>\u00a0]<\/p>\n

Estimates suggest this higher rate could yield an additional \u20ac5 billion in receipts for the exchequer.<\/p>\n

A Department of Finance<\/a> spokesman said they did not expect to see the first of these \u201ctop up\u201d payments until next month.<\/p>\n

Government coffers were also buoyed by strong income tax receipts, which generated \u20ac2.9 billion in June and \u20ac18.6 billion for the year so far, \u20ac1.2 billion (6.7 per cent) ahead of last year.<\/p>\n

\"\"The 9 per cent VAT rate has been welcomed by restaurants but does the hospitality sector actually need it?<\/p>\n

While June is a non-VAT month, receipts from the sales tax, an indicator of consumers, were \u20ac12.5 billion for the six-month period, \u20ac868 million ahead of last year.<\/p>\n

On a cumulative basis, corporation tax generated \u20ac13.7 billion for the period, up by \u20ac615 million (4.7 per cent) on last year.<\/p>\n

\u201cWhile the June corporation tax receipts were only marginally ahead of June 2025, when looked at in the wider context, it is a solid set of numbers,\u201d Grant Thornton\u2019s Peter Vale said.<\/p>\n

\u201cUnderpinning the June figures is likely to be a strong showing from the technology sector in particular,\u201d he said.<\/p>\n

\u201cImportantly, as the June figures generally reflect full year profit estimates, it augurs well for the critical month of November,\u201d Vale said.<\/p>\n

On the spending side of the exchequer numbers, total gross voted expenditure to the end of June amounted to \u20ac54.4 billion, which was \u20ac3.5 billion (6.9 per cent) ahead of last year. <\/p>\n

The Irish Fiscal Advisory Council,<\/a> the Government budgetary watchdog, is warning that overruns in day-to-day public spending are likely to top \u20ac1 billion this year.<\/p>\n

The Government revised up spending forecasts by \u20ac665 million in April, mostly due to anticipated spending overruns in education and as a result of cost-of-living supports including an extension of the fuel allowance. <\/p>\n

But further overruns in health and social protection are expected to push this on again.<\/p>\n","protected":false},"excerpt":{"rendered":"Another strong month of corporation tax receipts in June has strengthened the Government\u2019s finances ahead of the budget.…\n","protected":false},"author":2,"featured_media":531492,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[14617,5168,72,1398,61,60,10297,15016],"class_list":["post-531491","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-apple-tax","tag-budget","tag-business","tag-department-of-finance","tag-ie","tag-ireland","tag-irish-fiscal-advisory-council","tag-organisation-for-economic-co-operation-and-development-oecd"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/531491","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=531491"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/531491\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/531492"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=531491"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=531491"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=531491"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}