Michael Moynihan (Cork North West, Fianna Fail)
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42. To ask the Minister for Finance the extent of corporation tax receipts in the first five months of the year; and if he will make a statement on the matter. [30072/22]

Willie O'Dea (Limerick City, Fianna Fail)
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76. To ask the Minister for Finance the way that the tax receipts for the first five months of 2022 compare with the same period in 2021; and if he will make a statement on the matter. [30327/22]

Neale Richmond (Dublin Rathdown, Fine Gael)
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85. To ask the Minister for Finance if he will report on the tax revenues to date in 2022; and if he will make a statement on the matter. [31019/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 42, 76 and 85 together.

Tax receipts in the January-May 2022 period amounted to €30.1 billion, up by almost €6.4 billion (27 per cent), on the same period last year. This was driven by very strong growth in VAT, corporation tax and income tax.

Income tax receipts to end-May were up by €1.7 billion (17 per cent), compared to the same period last year. This is a reflection of the strong recovery in our labour market, with employment now at its highest level ever, as well as continued robust increases in wages in sectors less affected by the pandemic.

The strong rebound in VAT receipts – up by €2.0 billion, or almost 29 per cent – also points to the scale of the domestic economic recovery.

Of course, it is important to remember that these annual comparisons are flattered by a number of factors, such as the impact of stringent public health restrictions last year, the warehousing of tax receipts and the temporary reduction in the standard rate of VAT, which exaggerates the annual growth rate.

Corporation tax receipts amounted to €5.2 billion to end-May, up by €2.3 billion (77 per cent) on the same period last year. This was mainly driven by increased profitability in the multinational sector; it also reflects, in part, a timing issue, whereby receipts received in August last year have been received earlier this year, distorting the annual comparison.

Excise receipts of €2.1 billion were broadly flat on last year. This is due, in part, to the measures Government has taken to address the rising cost of living by reducing excise on petrol, diesel and marked gas oil, and likely reflects the impact of rising energy price on excise-related consumption.

In conclusion, I would caution that these figures are backward looking; many of the risks that we identified in the spring forecasts (set out in the Stability Programme Update) now appear to be materialising. Inflation is higher, broader and more persistent than foreseen, external demand is slowing and borrowing costs are rising. All of these will have adverse implications for the public finances.