The figures released today show that consumers are continuing to spend, with strong VAT figures reflective of a buoyant January sales period.
Statistics released in the past week point to the strength of our domestic economy, with car sales well ahead of last year and importantly strong commercial van sales. Driving the growth is an increasing number of people at work, with income tax figures continuing to surge.
While income tax revenues are ahead of last year, the incoming government will be slightly concerned that the figures are behind target. This may be a blip, something that should become clearer next month.
On a more positive note, corporate tax revenues continue to surge, most likely driven predominantly by multinational companies with sizeable operations here. The strength of our reputation as a transparent regime should help us maintain this momentum. The international tax climate continues to be favourably disposed towards Ireland, with a focus on tax havens likely to see more companies move to jurisdictions with both a transparent tax regime and real substance. This can be positive for Ireland and see foreign direct investment growth continue, creating further employment.