Government tax revenue rises 14.5% in February as tax revenue increases

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The government collected 3.45 billion euros in tax receipts in February – up 14.5% on the previous year – as income tax receipts increased, according to the latest statements from the Plublic treasure.

Finance Ministry figures confirm that government finances remain sound as the economy emerges from the Covid crisis.

Income tax receipts brought in 2.1 billion euros, more than 60% of all receipts for the month. February is a so-called month of non-payment of VAT. It’s also not a significant month for companies paying corporation tax revenue which had hit a new high in 2021.

“The good performance of income tax reflects the ongoing labor market recovery, alongside continued wage increases in sectors less affected by the pandemic, while the significant increase in VAT revenues is driven by the rebound in consumer spending,” said Finance Minister Paschal Donohoe.

For the first two months of the year, the Treasury posted a budget surplus of €900 million.

Meanwhile, the jobless rate, which includes those in need of pandemic unemployment pay, fell to 7% in February from 7.8% the previous month.

Economists say unemployment has fallen rapidly since the crisis, but is nonetheless still ahead of the rate below 5% in February 2020 at the start of the pandemic.

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