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Irish revenues surge further thanks to reopening, corporate tax By Reuters

© Reuters. FILE PHOTO – Commuters arrive at work each morning in Dublin’s financial district, Ireland on October 18, 2018. REUTERS/Clodagh Kilcoyne

DUBLIN, (Reuters) – Ireland received 5.8% ($2.5 billion), more taxes than was expected in the first nine months due to a surge in VAT receipts.

Revenues from taxes have been more resilient than most expected during the COVID-19 Pandemic. In fact, almost every sector of the economy has seen a reopening since its third lockdown. This led to an increase in all major categories.

For September, the VAT received was 13.7% above the target, the same level as July’s opening of the hotel sector. The cumulative total of VAT collected for the entire year was 7.7% higher than expected.

This year’s total VAT collection is also 11% more than the amount collected in the nine first months of 2019, prior to the outbreak of the pandemic.

The country’s corporate tax returns are mainly collected from large multinational companies and more than doubled in record numbers since 2014. They were 1 billion euros or 14.8% ahead of what was expected at September end.

Income tax was the largest category and it was 0.8% more than target.

Spending 3.2% less than expected, the exchequer reported a smaller deficit of 9.2 million euros over a 12-month rolling basis.

Paschal Donohoe, the Finance Minister indicated that it is more likely for the government to have a smaller budget deficit than its 5.1% gross domestic product forecast.

($1 = 0.8600 euros)

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Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.