The latest Exchequer returns indicate that tax revenues in Ireland reflect a mixed economic picture. While VAT collections rose by €0.6 billion, income tax also saw an increase, suggesting robust employment and consumer activity. However, when excluding the one-off Apple tax windfall, total revenue growth is modest. Notably, corporation tax receipts dropped significantly in May, raising concerns about potential instability in this sector. Experts stress the importance of maintaining investment to support the population’s growth and caution against over-reliance on corporate tax performance due to its concentration among few taxpayers.
Daryl Hanberry from Deloitte Ireland remarked that the increase in VAT indicates strong employment and consumer spending, emphasizing the need for further investment to support the growing population.
Orla Gavin, head of tax at KPMG, noted the unexpected dip in corporation tax receipts in May, attributing it to the concentrated nature of taxpayers rather than a decline in overall business performance.
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