Gino Kenny
Ceist:163. Deputy Gino Kenny asked the Minister for Finance the last time a budget increased the blind persons tax credit. [5835/24]
Amharc ar fhreagraThursday, 8 February 2024
Ceisteanna (163, 164)
Gino Kenny
Ceist:164. Deputy Gino Kenny asked the Minister for Finance the reason the blind persons tax credit was not increased in line with other tax credit increases in Budget 2024; and his plans to increase the credit in the future. [5836/24]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 163 and 164 together.
The Blind Person’s Tax Credit was last increased in Budget 2008 from €1,760 to €1,830 for single persons and from €3,520 to €3,660 for a married couples or civil partners. It should be noted that as part of the suite of measures to deliver fiscal consolidation in Budget 2011, the Blind Person’s Tax Credit was reduced from €1,830 to €1,650 for single persons and from €3,660 to €3,300 for married couples or civil partners, and it has remained at these values since then.
As the Deputy will be aware, Budget 2024 included a significant tax package amounting to a cost of €1.3 billion in 2024 and €1.5 billion in a full year. The budget tax package was built around 3 key pillars: changes to tax credits, the standard rate band and USC, and the Government has sought to use each of these levers to spread the benefit of the available package as effectively as possible.
With regard to income tax, the main tax credits (personal, employee and earned income) were increased by €100 to €1,875 and the standard rate band was also increased by €2,000 to €42,000 for single persons with commensurate increases for married couples and civil partners.
I am also aware that the USC is a particular point of concern for many people and that is why I introduced the largest USC package since 2016 with a cost of €350 million in 2024. The 4.5 per cent rate of USC was decreased by 0.5 per cent to 4.0 per cent and the ceiling for the 2 per cent rate of USC was increased by €2,840 from €22,920 to €25,760. The increase in the 2 per cent ceiling will ensure that with the increase in the National Minimum Wage from €11.30 to €12.70 per hour, a full time worker earning the minimum wage will remain outside the higher rates of USC in 2024. Additionally, the reduced rate of USC concession for medical card holders was extended for a further two years.
Within the fiscal parameters available for Budget 2024, it was not possible to increase all tax credits and it was decided to spread the benefit of the tax package as effectively as possible across as many beneficiaries as possible. However, the tax changes introduced in Budget 2024 will benefit all income earners who pay income tax, including those persons in receipt of the Blind Person’s Tax Credit.
In all the circumstances, I am satisfied that the Blind Person’s Tax Credit in its current form is appropriately calibrated at present and there are no plans to increase the credit.
Question No. 164 answered with Question No. 163.