Ireland forecasts €54.2bn tax-take in 2018
Ireland is expecting to raise €54.2bn (£48bn) in taxes this year, 7% more than in the previous year, with the biggest increases expected to come from income tax and VAT, according to analysis published by the finance department
13 Feb 2018
The exchequer taxation profiles forecast income tax receipts will amount to €21.5m, 7% higher than last year. Income tax receipts are the largest tax revenue stream, accounting for just under 40% of the total tax revenue last year.
VAT receipts are projected at €14m for this year, an increase of just under 6%, and corporation tax receipts are expected to rise by almost 4% to €8.5m.
In contrast excise duty tax receipts are projected at €5.8bn, a decline of just under 2%. The department says this reflects the front-loading of excise duty payments on tobacco due to the introduction of ‘plain packaging’ from September of last year.
Together, the ‘big four’ tax heads account for over 90% of projected receipts.
From the beginning of 2018, local property tax is now paid directly into the local government fund (LGF), rather than being directed, in the first instance, to the exchequer. Conversely, motor tax receipts are now paid directly into the exchequer instead of into the LGF. However, the department says this classification change has no impact on the general government balance.
Exchequer Taxation Profiles 2018 are here.
Report by Pat Sweet