Record €85bn tax take as Government spending continues to climb

The Government collected a record €85 billion in tax in the 10 months to October but spending continues to rise at a worrying rate. The latest exchequer returns, published by the Department of Finance , showed total tax revenue stood at €84.9 billion at the end of last month. When receipts from the Apple tax case are stripped out, the total was €7.9 billion or 10.3 per cent ahead of the same time last year.

The strong performance was led by income tax , which generated €31 billion for the 10-month period, 8.4 per cent up on last year, reflecting the high level of employment. Government coffers were also buoyed by strong corporate tax receipts, which took in €23.9 billion, 23.4 per cent ahead of last year.

The concentration of corporate tax receipts around a small number of US multinationals remains a significant risk for the exchequer. [ Fiscal advisers point out the flaws but Government ignores them. What’s the point of Ifac? Opens in new window ] In 2025, just three firms – Apple , Microsoft and Eli Lilly – accounted for 46 per cent of receipts from the business tax.

October is not a VAT -due month and only “modest” receipts were collected during the month, but on a cumulative basis, the sales tax generated €20.5 billion, 7.3 per cent up on the 2025 total at this stage. Total gross voted expenditure to the end of October amounted to €93.6 billion, which was 7.4 per cent up on last year.

British Ambassador to Ireland Kara Owen on current Anglo-Irish relations, trade opportunities, and the possibility of a Brexit reversal Listen | 39:03 The Government has come under pressure to rein in spending and save more of its corporate tax windfall. The Irish Fiscal Advisory Council has warned there will be close to €2 billion of overruns in this year’s figures compared with what was forecast last year.

Much of the overrun total stems from an overspend in health. In a bid to rein in spending, the Government has adopted a new spending framework that pledges to keep the annual lift in expenditure inside a 6 per cent threshold. “Today’s exchequer figures reflect an economy that is continuing to perform well, despite the external challenges and headwinds facing us both domestically and globally,” Minister for Finance Simon Harris said.

“The continued strength of our economy and public finances has given us the capacity to support families and businesses through Budget 2027 , as well as allowing us to invest in our public services and take important steps to safeguard our future,” he said. “At a time of considerable global uncertainty, it is more important than ever that we manage our public finances responsibly,” Harris said.

“That is why, on budget day, I announced that an additional €1 billion in tax receipts, above and beyond what is required by law, will be transferred into the Future Ireland Fund next year,” he said. [ Fine Gael considers ‘AI dividend tax credit’ for businesses Opens in new window ] Minister for Public Expenditure Jack Chambers said: “The increase in expenditure to end-October reflects the Government’s commitment to strengthening public services.” On corporate tax, Orla Gavin, head of tax at KPMG Ireland , warned that some of the year-to-date corporation tax surge was expected to unwind in November.

“November will therefore be crucial in distinguishing timing effects from the underlying trend in corporation tax receipts,” she said. The department warned last month that some company payments expected this year would not now arrive until early next year. Sasha Kerins, tax partner at Grant Thornton Ireland , said: “The resilience of the domestic economy is particularly noteworthy against a more difficult international backdrop, including renewed inflationary pressures across Europe.”