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Government Considers New Rate Of Tax

Laura Donnelly
Laura Donnelly

02:34 24 Mar 2022


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The government is considering bringing in a lower middle income tax bracket, to off-set the rising cost of living.

While the move has been welcomed by many, the St Vincent de Paul has called on ministers to do more for those living below poverty line.

If introduced, this change in policy would see people on a salary of more than €36,800 taxed at 30%, instead of the current rate of 40%.

Chief Economist with KBC Austin Hughes says the current jump in bands puts people off seeking a pay raise, but head of Economics at the University of Limerick Stephen Kinsella says the measure only helps half the working population.

The St Vincent de Paul wants to see the government prioritising lower income workers who they say are most affected by the rising cost of living.

As well as the tax changes, the Tánaiste also signalled towards pay increases and higher social welfare payments in the next budget - to help with rising inflation.

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