The Exchequer tax haul for the first two months of 2022 is 20% ahead of the same period last year, when society was locked down by Covid restrictions.

When compared to the same period in 2020, a less distorted base, tax receipts have increased by 10%.

Tax revenues of €3.5bn were collected in February, up 15% year-on-year, with the bulk of the increase driven by income tax receipts.

Income tax receipts of €2.1bn were recorded in February, 21% ahead of February 2021.

For corporation tax, the monthly haul was €219m, down €73m from the February 2021 figure.

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Year to date the corporation tax yield is 14% below last year. “Significant corporation tax receipts are not generally received until later in the year,” said the Department of Finance.

February is a non-VAT due month. Cumulative VAT receipts stand at €3.4bn, an increase of 27% on the same period last year.

DoF noted that receipts in 2021 were impacted by the temporary reduction in the standard rate of VAT, along with the introduction of public health restrictions. When compared to the same period in 2020, receipts are up by 10%.

Capital gains tax receipts to end-February stood at €252m, up by €197m compared to end-February 2021.

DoF explained that half of the year-on-year growth is due to a technical adjustment whereby Revenue reallocated €99m of receipts out of capital gains tax in January 2021.

However, there are also indications of strong growth in property values and share transactions, both of which benefit capital taxes.

Customs receipts of €112m to end-February were €44m than the same period last year. The increase is likely a result of increased trade with the UK compared to the same period last year, according to DoF.

Finance minister Paschal Donohoe said the underlying tax trends are a good signal of the continued momentum in the domestic economy.

"The strong income tax performance reflects the ongoing recovery in the labour market, alongside continued wage increases in sectors less affected by the pandemic, while the significant increase in VAT receipts is driven by the rebound in consumer spending," the minster stated.

"While recent trends are positive, we cannot become complacent. Budget 2022 set a framework within which we can reduce the deficit and restore the public finances, while continuing to invest heavily in public services, particularly in capital infrastructure."

Public expenditure minister Michael McGrath said Covid supports continue to feature strongly in social protection expenditure, with costs of €740m for the Pandemic Unemployment Payment, the Employment Wage Subsidy and the Covid Illness Benefit. "This reflects our ongoing commitment to people and business as we emerge from the pandemic," he said.