Willie O'Dea (Limerick City, Fianna Fail)
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117. To ask the Minister for Finance the way in which income tax receipts to date in 2025 compare to the same period last year; and if he will make a statement on the matter. [39267/25]

Albert Dolan (Galway East, Fianna Fail)
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129. To ask the Minister for Finance how corporation tax receipts to date in 2025 compare to the same period last year; and if he will make a statement on the matter. [39354/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 117 and 129 together.

Total tax revenues for the first six months of year amounted to €49.5 billion. This was an increase of €4.7 billion. A little over a third of this increase is due to once-off tax revenue arising from the Court of Justice of the European Union ruling of September 10th, 2024. When these once-off revenues are excluded tax receipts of €47.7 billion closed the first half of the year. This is some €3 billion ahead of the same period last year and slightly ahead of target by €0.5 billion.

Income tax and corporation tax receipts were the main drivers of this increase, accounting for most of the growth in tax revenues for the year-to-date.

Income tax receipts of €17.4 billion were collected in the first six months of the year. This was ahead of the same period last year by €0.7 billion or 4.3 per cent and broadly in line with expectations. The growth in income tax receipts is evidence of the continuing strength in our labour market.

However, the most notable feature of the June returns was the large year-on-year increase in corporation tax revenues. This meant receipts closed the first half of the year up by €0.9 billion or 7.4 per cent, which is consistent with the strength that we have seen in the multinational sector. However, the June increase largely compensated for a sharp decline in the previous month, meaning receipts are only slightly ahead of expectations, by around €300 million.

The large monthly swings in this revenue stream in the year-to-date serve as an important reminder of the highly concentrated nature of the corporate tax base and demonstrates why permanent spending commitments must not be built based on these volatile revenues.

Government has acted to ensure the sustainability of the public finances by establishing the Future Ireland Fund and Infrastructure, Climate and Nature Fund . These funds will allow us to save some of these potentially transient receipts to build up our fiscal buffers and ensure we have the fiscal firepower for the future fiscal and structural challenges that we know are on the horizon.

Last month, Government transferred the first tranche of the scheduled payments this year into the two funds, amounting to some €3 billion. After the second tranche of the payments are made into the fund later in the year, there will be an estimated €16 billion in the two funds.

Ultimately, the best way to maintain our public finances on a positive trajectory over the medium-term is by adhering to a balanced and appropriate budgetary strategy: it is in this context that the fiscal parameters for Budget 2026 are being drafted.