Michael Healy-Rae
Question:340. Deputy Michael Healy-Rae asked the Minister for Finance if the tax band for married couples will be increased (details supplied); and if he will make a statement on the matter. [27099/23]
View answerTuesday, 13 June 2023
Questions (340)
Written answers
The Programme for Government (PfG), “Our Shared Future”, contains a number of specific commitments relating to personal taxation. These include the commitment that, “In Budget 2021, there will be no change to income tax credits or bands. From Budget 2022 onwards, in the event that incomes are again rising as the economy recovers, credits and bands will be index linked to earnings. This will be done to prevent an increase in the real burden of income tax, to prevent more low income workers being taken into the tax net because of no changes to the tax system and to ensure there is no increase in the number of people having to pay higher income tax and USC rates.”
Significant progress has been made in achieving these commitments. For example, over the last two Budgets the Government increased the married one earner standard rate income tax band by 10.6 per cent from €44,300 to €49,000. In addition, the main tax credits - personal tax credits, employee tax credit and earned income credit - were increased by around 7.6 per cent or €125 each from €1,650 to €1,775. It is also worth pointing out the Home Carer Tax Credit was also increased by €100 from €1,600 to €1,700 (a 6.3 per cent increase) in Budget 2023.
As the Deputy will be aware, the Summer Economic Statement (SES), which will be published in the coming weeks, will set-out a budgetary framework within which Budget 2024 can be delivered.
There will be many competing demands and asks in advance of the Budget. The Budget tax package, including the precise nature of the income tax package, will be formulated over the coming months.
Finally, as the Deputy will also appreciate it is a longstanding practice of the Minister for Finance not to comment in advance of the Budget on any tax matters that might be the subject of Budget decisions.