Tax take to end of May up 3.6% on same time last year
Taxes collected by the State rose by 3.6% in the first five months of the year to €36.4bn, according to latest Exchequer Returns from the Department of Finance.
When some funds from iPhone-maker Apple, which was forced to pay back taxes as part of settlement of up to €14bn to Ireland are included, the amount of tax collected was up 8.5%.
Income tax, a key indicator of the health of the economy, was up by 4.5%, while VAT rose 5.5%.
Corporation tax, including funds from Apple, was up 18% in the first five months of the year.
However, if the Apple money is excluded, corporation tax is down 9.4% on the same period last year.
Minister for Finance Paschal Donohoe said the drop was driven by one-off factors last year.
But he added: "It nonetheless highlights the degree of concentration in the corporate tax base, where a small number of multinational firms can significantly impact on the overall tax yield."
The figures also show Government spending was up 8% in the first five months of the year to €42bn which was close to its target.
There was an exchequer surplus of €4bn in the five months to the end of May.
But excluding the money from Apple the surplus was €700m.
Minister Donohoe said: "May is one of the most important months for tax revenues and the steady growth in most tax headings points to an economy that is in a in a relatively good position."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Times
4 hours ago
- Irish Times
The Irish economy grew by 22% over the past year. Yes, you read that right
Ireland's economic data was always going to be a bit special at the start of this year. But Thursday's figures were mind-bending. It is impossible to overstate the extent to which we now stand out in international comparisons. And this is not just a curiosity – it matters. The economy, as measured by gross domestic product (GDP) , was 22 per cent larger in the first quarter of 2025 than one year earlier, according to the latest estimates from the Central Statistics Office . Think about it. The figures suggest that for every €1 of activity last year, there was €1.22 in 2025. Even comparing GDP in the first quarter of this year with the last quarter of 2024, there is a rise of close to 10 per cent – this is roughly the extent of growth across the euro zone over the past decade. Of course this bonkers data is not real, in the sense that it does not reflect what is happening in the underlying economy in which we all live. How could it? As has been long discussed the headline economic data is entirely distorted by the activities and tax planning of a small number of very big US tech and pharma companies. From time to time, this has created huge distortions in the figures. A decade ago, top US economist Paul Krugman famously described a 26 per cent GDP growth rate reported for the Irish economy (later revised up to over 30 per cent) as 'leprechaun' economics . At the time the figures were distorted by massive tax-driven investments by the companies concerned, including Apple, essentially a manoeuvre by the companies involved to try to keep their tax bills down as international rules changed. READ MORE Now, as one observer put it, we are seeing another 'Krugman' moment. This time the reasons are different. Big pharma companies have been rushing product over to the US to try to get drugs and key ingredients into the market before Donald Trump announces tariffs on the sector. This has led to a surge in exports, feeding into the GDP data. Many of these are manufactured here – and some are made elsewhere but organised by Irish subsidiaries and so also show up in our figures. And so we see a massive surge in Irish GDP in the first quarter of this year. A big – temporary – decline in pharma exports in GDP will follow at some stage, as the firms involved must now have massive stocks jammed into every free warehouse in the US. Much will depend on how the tariffs story plays out. [ Welcome (back) to the era of Leprechaun economics Opens in new window ] Whether Krugman renews his leprechaun offensive or not, let's not pretend this won't be noticed. Ireland's GDP data is not some irrelevance in a quirky economic corner. The amounts of money being moved through Ireland are now enormous. Daniel Kral, chief economist at Oxford Economics , calculates that Ireland – which accounts for 4 per cent of the euro zone economy – accounted for half its total growth over the past year. Analysts have taken to looking at the figures 'excluding Ireland'. How do we pull back from all of this to judge the underlying health of the economy? Total demand in the domestic economy – adjusted by the CSO to remove the multinational factors - rose just 1 per cent over the year. But we need to look under the surface here, too. Consumer spending, a good measure of how we feel, was up by a decent 2.5 per cent. But the overall figure was dragged down by a fall in business investment, presumably reflecting the international uncertainty. So households continued to spend in the first part of the year, but businesses are taking a wait-and-see approach to big capital spending. This is likely to be reflected in the jobs market as the year goes on – and here AI is also changing the game in many sectors. Consumers may get more cautious too. Uncertainty is starting to slow the economy and this is a trend we need to watch as the year goes on. The piece of data that seemed a bit out of line this week was a 30 per cent fall in corporation tax in May compared with the same month last year. This was affected by the comparison with a strong May last year – which the Department of Finance suggests was boosted by once-off factors. Two of our biggest taxpayers, Pfizer and Microsoft – pay significant amounts of tax that month. But the key early indicator for most of the big companies is June – and what happens here will give a good pointer for the year as a whole. The figures do underline one point. It is our huge reliance on the opaque affairs of four or five massive companies – and our exposure to the sectors they operate in, their own performance and complex decisions on how their tax structures are set up. Our latest bout of data exceptionalism again puts Ireland in the spotlight, when it would have been better to keep the head down. It underlines the outsize take Ireland is getting from pharma and tech activity in the EU – both contentious points in the White House. Notably, the US added Ireland to an economic watch list this week, based on the size of our trade surplus. We are very much on the radar in Washington. Our corporate tax take and manufacturing base are looked on enviously not only from the US , but from elsewhere in Europe. [ 'No long-term commitments to anything' – Ireland's economy is experiencing a silent slowdown Opens in new window ] The advance shipping of products again focuses attention on the scale of activity and tax planning in Ireland by big pharma companies. And this causes a rollercoaster of cyclical activity. But what really counts is longer-term, structural issues. Will these pharma giants decide over time – and it would take years – to relocate some of their production to the US? Will their profits and thus tax payments here be hit by Trump's policies? Or will they – or some of the tech giants – alter their corporate structures so that they pay significantly less tax here? It comes down to whether Trump's policies change the way the economic and corporate world operates fundamentally, a fair bit or not much at all. As Ireland benefits from the current system so much, the more it changes, the more risks there are for us. The coming months will tell a lot.
The Irish Sun
21 hours ago
- The Irish Sun
New €200 maximum childcare fee boost for 190k Irish parents in MONTHS as ‘higher subsidies' details confirmed
CHILDCARE fees for around 190,000 parents across Ireland will be capped at just under €200 each week, it has been confirmed. Minister for Children 2 Childcare fees for thousands of Irish parents will now be capped at just under €200 each week Credit: Getty Images 2 Children's Minister Norma Foley confirmed the change in the maximum childcare fees yesterday Credit: Cillian Sherlock/PA Wire And the A This will lower the maximum fees that can be charged depending on the number of hours provided. Under these new maximum fee caps, the highest possible fees will be no more than €295 per week for a full day place of between 40-50 hours per week. READ MORE IN MONEY This will bring these fees closer to the average weekly fee of €197 for full day care. These fees for parents are then reduced by State subsidies under the National Childcare Scheme and the free, universal two-year Early Childhood Care and Education preschool programme. A parent being charged the maximum permissible fee of €295 per week for a full day place would be entitled to receive the universal National Childcare Scheme subsidy of €96.30. This means a parents co-payment would be no more than €198.70 each week. MOST READ ON THE IRISH SUN However, it has been confirmed that "higher subsidies are available for many parents", depending on their level of income and the age and number of children in their family. I work in a nursery and there are four types of parents we cannot stand one bit - and don't even get me started on kids wearing pull-ups Confirming the new caps, Minister Foley said: "Since 2020, the amount of State funding in this area has increased from around €600 million to €1.37 billion this year. "That has led to a 50 per cent reduction in the cost faced by parents on average and a record number of children – approximately 190,000 have benefitted from the National Childcare Scheme this year. "So there has been progress. But I know that the cost of early learning and childcare is still far too high for many parents." FEE FREEZE In addition to the new fee cap, funds available through Core Funding will ensure the existing fee freeze, introduced in 2022, will remain in place for participating services. Minister Foley said: "The extension of maximum fee caps to all services participating in Core Funding will reduce costs for families facing the highest fees in the country. "It will address some of the extreme fee disparities across the sector in a meaningful way, so that there are more consistent rates in place for families in their local areas. "It is another step along the way to achieving the commitment in the Programme for Government to a maximum payment by parents of €200 per child per month for early learning and childcare during the lifetime of this government. "Core Funding has enjoyed high participation rates to date, with 92 per cent of services taking part." WHAT DO MAX FEE CAPS MEAN FOR ME? MAXIMUM fee caps were introduced for Partner Services joining Core Funding for the first time in September of last year. Today's announcement means that maximum fee caps will apply to all new and existing Partner Services from September. Any fees above these caps will now be lowered. Now, a parent availing of 45 hours of care for their child, and who is also in receipt of the maximum NCS subsidy, will not pay any more than €198.70 out of pocket costs. The She said: "I am confident that the increased funding available from September will allow for the continued partnership with early learning and childcare services." The additional €60 million includes €45 million specifically ring-fenced to support the outcomes of the committee made up of employer and employee representatives from the childcare sector. Foley said: "We want the best of people caring for and educating children in the sector. To do that, and to keep them in the sector, they need to be paid fairly. "This new €45 million in funding will be contingent on increased minimum pay rates for the sector being agreed by the Joint Labour Committee. "Once new Employment Regulation Orders for the sector are agreed, this funding will specifically support employers to meet the costs of these increases to the minimum rates of pay in the sector."
Agriland
a day ago
- Agriland
Minister urged to retain tax relief for farmers
The Irish Cattle and Sheep Farmers' Association (ICSA) is urging the Minister for Finance, Paschal Donohoe to retain key tax relief for farmers ahead of Budget 2026. ICSA Rural Development chair Edmond Phelan has said that the retention of key tax reliefs for farmers is absolutely vital, particularly in the context of generational renewal and the need to provide greater certainty for family farms. 'These reliefs – such as the Young Trained Farmer stamp duty exemption, Agricultural Relief from Capital Acquisitions Tax [CAT], and Farm Consolidation Relief – are not just technical tax measures,' Phelan said. 'They are essential supports that underpin efforts to improve farm viability, encourage land mobility, and, crucially, to support young people to enter and remain in farming. 'There should be no disincentives to farm transfers,' he said. The ICSA was responding to comments made by Minister for Finance Paschal Donohoe, who confirmed in response to a parliamentary question, reported by Agriland, that several farm-related tax relief schemes are currently under review ahead of Budget 2026. According to Minister Donohoe, a number of tax reliefs are due to 'sunset' at the end of 2025. The first scheme under review is the Accelerated Capital Allowance (income tax) for slurry storage. The second scheme the minister mentioned was the Young Trained Farmer (stamp duty) Relief. The Farm Consolidation (stamp duty) Relief is also under review and the minister also mentioned Revised CAT Agricultural Relief. Phelan said the looming expiry or 'sunset' of these schemes at the end of 2025 must be addressed with clarity and urgency. 'ICSA is calling on the Minister for Finance to commit to the long-term retention of these reliefs in Budget 2026,' the ICSA chair continued. 'Farmers need certainty to plan for succession, make investment decisions, and meet environmental obligations. The absence of a firm commitment to extend these measures risks creating unnecessary hesitation at a time when we should be incentivising action. 'The other targeted tax reliefs mentioned by Minister Donohoe – Farm Restructuring (CGT) Relief and the Accelerated Capital Allowance for slurry storage – are equally vital for improving both environmental performance and economic sustainability on farms,' he added. The farm group has said that all of these measures align with national goals around climate action, biodiversity, and generational renewal. It added that removing or weakening them would send the wrong message at a time when the sector is being asked to do more than ever.
