The Irish government has reported a substantial increase in corporation tax revenue, collecting €12 billion in the first half of 2024. This is an impressive 15% increase from the same period last year and can be attributed to reforms in global tax rules that require major companies to pay a significant portion of their corporation tax in Ireland. As a result of this windfall, the Irish government is establishing a sovereign wealth fund.
Last year, Ireland raised €24 billion in corporation tax, up from the €8 billion collected six years ago. Finance Minister Jack Chambers has announced that the budget will be brought forward to October 1st, sparking speculation that a general election may be called before the end of the year. However, Mr. Chambers has stated that the government is committed to serving its full term into next year and that the change in budget date is due to ministerial commitments in Europe.
The Irish economy has been performing well, with income taxes for the first half of 2024 reaching almost €17 billion, up by 7.5% from last year. VAT receipts also reflecting consumer spending were also up by 6.2%. Despite this strong performance, the Fiscal Advisory Council has warned against implementing a “giveaway” pre-election budget as it could lead to inflation rising again. The council emphasized the importance of making careful budgetary choices to avoid overheating