Increase in tax receipts as Tánaiste warns of global economic uncertainty

By Bairbre Holmes, Press Association

There was a 3.4 per cent increase in the amount of tax collected by the Government in the first quarter of this year, compared to 2025.

Exchequer figures released on Tuesday show tax receipts of €22.6 billion were collected in the first three months of 2026.

There was a 6.1 per cent rise in income tax to €8.7 billion, and a 5.3 per cent increase in VAT receipts to €8 billion.

While an Exchequer deficit of €0.2 billion was recorded, the Department of Finance’s chief economist explained that was largely a “timing issue” as a result of money being transferred to Ireland’s long-term investment funds, the Future Ireland Fund (FIF) and Infrastructure, Climate and Nature Fund (ICNF).

John McCarthy also described the increase in tax revenue as “solid” without being “spectacular”.

Government spending was up €1.6 billion compared with the same period last year, which McCarthy said was driven by an increase in spending by the Department of Health and the Department of Social Protection.

The Tánaiste and Minister for Finance Simon Harris said these figures came at a “grave moment for the world”.

He said: “Decisions that will be made in the coming hours will have profound global economic impact in one direction or the other.”

However, he said, Ireland is approaching “this moment of challenge better prepared than we have perhaps been in the past”.

Harris warned: “If this escalation continues, particularly involving critical energy infrastructure or key maritime routes the global economic consequences will be significant.

“And we will face an economic challenge of varying scale, substance and severity, depending on the course of action that others decide in the hours ahead.

“No government can fully shield its people from a shock of that magnitude.”

He said the Irish Government is acting in a way that “seeks to protect the most vulnerable and sustain our economic stability at this moment of challenge”.