DUBLIN: Ireland’s corporation tax receipts for 2019 will be around €300 million higher than previous estimates, figures released on Saturday showed, giving the country a cushion against any economic slowdown in the event of a hard Brexit.
In a paper published ahead of next week’s budget, the government said it expected corporation tax receipts of €10.28 billion this year, rising to €10.44 billion next year. The government had estimated receipts of €9.98 billion for 2019, and €10.465 billion for 2020.
Ireland is heavily dependent on corporation taxes, which have more than doubled since 2012 and now account for around 17.5% of total tax revenues. The value of the budgetary package to be announced on October 8 will be around €2.8 billion- 2.1 billion of which has already been pre-committed to areas including planned infrastructure spending and public sector pay.
Ireland will base its budget for 2020 on the assumption that Britain exits the European Union later this month without agreeing a separation deal, setting aside funds for vulnerable sectors, Finance Minister Paschal Donohoe said on Friday.
Published in The Express Tribune, October 6th, 2019.