Ireland’s financial performance in March exceeded expectations, according to Davy’s Chief Economist, Conall MacCoille. Tax receipts rose by 15% to 19.7 billion Euro, with corporation taxes soaring 71%. Income taxes also indicated job growth, increasing 8% to 7.4 billion Euro, while consumer spending was strong, with value-added taxes growing 16% to 6.8 billion Euro.
The real show-stopper, though, was corporation taxes, which rocketed 71% in the first three months of 2023 to 3.2 billion Euro. This impressive performance creates an upside risk to the forecast of a €9 billion surplus in 2023, as the Department of Finance had predicted a ‘windfall’ of 10 billion Euro.
This influx of revenue will cause an increase in the amount of government debt issued, as existing bonds mature and budget surpluses are invested. Despite this, the impressive growth in corporation taxes is a great sign for Ireland’s financial future.
