Willie O'Dea
Question:96. Deputy Willie O'Dea asked the Minister for Finance for a report on income tax receipts in the first four months of 2024; and if he will make a statement on the matter. [22569/24]
View answerTuesday, 21 May 2024
Questions (96, 110)
Cathal Crowe
Question:110. Deputy Cathal Crowe asked the Minister for Finance for a report on corporation tax receipts in the first four months of 2024; and if he will make a statement on the matter. [22566/24]
View answerWritten answers
I propose to take Questions Nos. 96 and 110 together.
Income tax receipts of €11.2 billion were collected in the first four months of the year. This was up by €0.7 billion or just over 7 per cent on the same period last year. This is a clear reflection of the strength of our labour market despite all the external challenges that we have faced over the last number of years.
In terms of corporation tax, receipts recorded in the first four months of 2024 stood at €2.7 billion. This was down by €0.8 billion or almost 24 per cent on 2023. The indications are that this relates to a timing factor: so we would expect a corresponding increase at some point later in the year to offset this.
Nonetheless, as I have stated on many occasions corporation tax is a highly volatile and unpredictable source of tax revenue. A key pillar of this Government’s approach to budgetary policy has been to mitigate the risk of volatile windfall tax receipts being used to fund permanent spending. These are receipts unlinked to the domestic economy.
This is why we published legislation to establish two new long-term investment funds, the Future Ireland Fund and the Infrastructure, Climate and Nature Fund, to enable us to make use of these potentially transient revenues to prepare for future structural challenges. This legislation is currently making its way through the Houses of the Oireachtas.
Question No. 97 answered with Question No. 81.