Skip to main content
Normal View

Tax Code

Dáil Éireann Debate, Wednesday - 24 March 2021

Wednesday, 24 March 2021

Questions (459)

Fergus O'Dowd

Question:

459. Deputy Fergus O'Dowd asked the Minister for Finance his views on proposals raised in correspondence (details supplied) in respect of the taxation of overtime in Ireland; and if he will make a statement on the matter. [14603/21]

View answer

Written answers

It is a general principle of taxation that, as far as possible, income from all sources should be subject to taxation.

Ireland has a progressive income tax system which is structured such that the more income you have, the more tax you pay. As a person’s income increases they move up through the various rates and bands and, as a result, while the levels of take home pay increase overall, the amount of tax they pay also increases.

Total income taxes paid account for around 40% of Ireland’s annual tax receipts and thereby make a significant contribution to cover the cost of the various Exchequer funded State services, many of which are experiencing significant pressures at this time due to the need to respond to the unprecedented set of circumstances arising as a direct result of the Covid-19 pandemic.

While it is the case that policy choices exist as to how best to deploy the available financial resources of the State, such resources are being prioritised at the present time on initiatives to support those who are no longer in employment or who will or have had reduced income, as well as measures seeking to support employers in retaining staff on the payroll.

Top
Share