Dáil Éireann díospóireacht -
Wednesday, 7 May 1969

Vol. 240 No. 5

Financial Resolutions. - Financial Resolution No. 1: Income Tax and Sur-Tax.

Minister for Finance (Mr. Haughey)

I move:

(1) That income tax shall be charged for the year beginning on the 6th day of April, 1969, at the rate of seven shillings in the pound.

(2) That sur-tax for the year beginning on the 6th day of April, 1969, shall be charged in respect of the income of any individual the total of which from all sources exceeds two thousand five hundred pounds and shall be so charged at the same rates as those at which it is charged for the year beginning on the 6th day of April, 1968.

(3) It is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act. 1927 (No. 7 of 1927).

Mr. M.P. Murphy

I should like to say briefly that there will be a great wave of disappointment throughout the country when it is known that only an additional £15 of income is made available under this Resolution for single workers and £30 for married people. This is completely inadequate and I protest against it. Single workers expected that the tax-free salary would at least be brought up to £10 per week. It is ridiculous to ask people earning more than £6 10s. a week to pay income tax.

Mr. Haughey

Some 30,000 people will cease to pay income tax as a result of today's Budget.

Mr. James Tully

The Minister does not have to be reminded that £15 extra in this case means less than £5 per year—£15 at 7/- in the £. The Minister may remember that, as I mentioned last year, we have been asking him for years to include in the income tax allowances the travelling expenses of those who must travel long distances to work. Instead of giving relief here in effect what he has done is to put an extra 3d per gallon on their petrol. The Minister is being most unfair to these workers——

Mr. Haughey

This is totally out of order.

An Ceann Comhairle

The Deputy must confine himself to the terms of Resolution No. 1. The petrol tax will come up for discussion on a later Resolution.

Mr. Haughey

This Resolution only fixes the rates of tax.

Mr. James Tully

I know, but I do not think the Minister should have done what he has done here. He should have made special provision for those about whom I am talking. We have raised this matter again and again.

Mr. P.J. Lenihan

Surely the expenses involved in the case of a man travelling to work will be covered by the increase in the single person's allowance or the married person's allowance?

Mr. James Tully

Not at all.

Mr. P.J. Lenihan

I have been a collector of taxes and I know that it will be.

Mr. James Tully

Perhaps, the Chair would allow the Deputy to explain how an extra £5 tax remission in the personal allowance will compensate a man who is travelling 40 miles each way per day and who has to pay an extra 3d per gallon for his petrol?

Mr. Sweetman

Was the Deputy talking of Schedule E or Schedule D?

Mr. P.J. Lenihan

Schedule B is abolished.

Mr. Sweetman

I said Schedule D. I am sorry if the Deputy cannot understand my accent.

Question put and agreed to.