Government tax revenue rose marginally in January compared with the same month last year as VAT receipts linked to the Christmas sales remained strong.
Exchequer returns, published by the Department of Finance, show the Government collected €8.5 billion in tax last month.
While the total was down by €1.7 billion (16.6 per cent) on same period in 2025, the year-on-year comparison was distorted by once-off receipts arising from the Apple tax ruling.
When these are excluded, total tax receipts collected in January were up slightly on last year, by €48 million (0.6 per cent).
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The department noted that January is a VAT-due month “and generally the strongest VAT month of the year, encompassing the Christmas trading period”.
Receipts from the sales tax amounted to €4.2 billion, up by €135 million (3.3 per cent) on January 2025.
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Income tax, by far the largest component of Government tax revenue, generated €3 billion in January, which was €30 million (1 per cent) ahead of January 2025.
January is not a significant month for corporate tax and receipts came to just €58 million, down by €32 million.
“The January returns show that receipts were up by around 2 per cent once technical factors are accounted for,” Tánaiste and Minister for Finance Simon Harris said.
“VAT receipts in January – which capture the Christmas period – were solid, pointing to the underlying strength in our economy,” he said.
“Income tax growth was slightly lower, which may in part reflect more taxpayers claiming reliefs,” he said.
The department said an exchequer surplus of about €100 million was recorded in January. This compares with a surplus of €3.6 billion recorded in January 2025, a decrease of €3.5 billion.
It noted the year-on-year comparison was again impacted by revenues arising from the Apple tax case.
When these revenues are excluded, a decline of €1.8 billion was recorded in the underlying exchequer balance, largely due to transfers from the exchequer to the Future Ireland Fund and the Infrastructure, Climate and Nature Fund, it said.
Total gross spending in January amounted to €9.7 billion, which was 5.1 per cent ahead of last year.
“This is below the rate of expenditure growth as set out in the Medium-Term Fiscal and Structural Plan,” Minister for Public Expenditure Jack Chambers said.
The rate of public spending increases signalled in the plan has been criticised by the Government’s spending watchdog.
The Irish Fiscal Advisory Council said planned spending increases would mean Government expenditure in 2030 would be 50 per cent more than it was in 2024 and “more than double the level of spending in 2019″.
Chambers said: “January spending reflects social protection rate increases as set out in Budget 2026, greater resourcing for healthcare, education and other frontline services and additional staffing to deliver a reliable and efficient public service.”
Responding to the latest exchequer returns, Orla Gavin, head of tax at KPMG, said: “Looking to the year ahead, the Government forecasts a 6 per cent rise in income and corporation tax receipts, and a 2 per cent increase in VAT.”
“While these projections reflect ongoing confidence, they are more muted than in recent years, signalling a recalibration of expectations,” she said.
