Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

The year-to-date receipts of income tax are at €23.1 billion compared with a performance last year of €21.4 billion, meaning it is up by over 8% year on year. However, when compared with the profile or the estimate of what we thought we would collect to the end of quarter 3, it is only ahead of it by about €145 million, or 0.6%.

As the Deputy said, VAT receipts are up by almost 10% year on year. However, again it is actually below profile by just over €100 million, or 0.6%.

The Deputy is precisely right on what is driving those receipts on the income tax size. It is a function of the number of people in work and also a function of rising incomes. When it comes to VAT, of course, it is a function of the volume of activity across the economy. There is certainly also a value consequence as prices increase and we have seen significant inflation. Of course, that is the final part of any bill layered on top. As a consumer tax, it reflects and takes account of the inflation that our economy has experienced recently.

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