Ibec, the group that represents Irish business, has today identified the strong tax receipts in January Exchequer returns as further evidence of current buoyancy in the Irish economy.
Commenting on January Exchequer receipts Ibec Director of Policy and Public Affairs, Fergal O’Brien said: “Overall tax receipts were very strong in January and there was particular buoyancy in both VAT and income taxes. The near 6% increase in the VAT receipts is reflective of very strong consumer spending across November and December. This is the strongest growth in VAT receipts for some time and it clear that the circa 5% increase in household disposable income over the past year is now being reflected in consumer spending across the retail, leisure and hospitality sectors. Irish consumers are clearly feeling much more positive about both the wider economy and their own financial circumstances and the consumer sector is now supporting a broad based momentum in economic growth.
“The income tax receipts were also impressive in January, growing by close to 7%. A combination of strong employment growth, wage increases and an increase in overtime and other variable wage costs to meet growing demand, should underpin a positive outlook for income tax receipts over the course of 2018.”