Plan to give tax breaks for emigrants returning home 'not likely' to go ahead

A special tax rate of 30% would be given to some workers

Plan to give tax breaks for emigrants returning home 'not likely' to go ahead

Finance Minister Michael Noonan and Taoiseach Enda Kenny | Image: RollingNews.ie

The Cabinet has not discussed plans to give emigrants tax incentives to return home.

Newstalk understands that proposals outlined in a newspaper earlier today were not brought to the weekly ministers meeting or discussed in advance.

Under the proposal, a special tax rate of 30% would be given to some workers for up to five years.

The lower tax rate would be aimed at those earning in excess of €75,000 in specialist jobs in areas such as medicine, science, IT and finance.

Our political correspondent, Páraic Gallagher, says it seems to have received a cool response from many quarters.

Meanwhile, Fianna Fáil and Labour have expressed grave concern.

Speaking on Newstalk Drive, Labour's Alan Kelly said the idea would give an unfair advantage to people who did not move away.

While earlier, an opposition TD said any such tax breaks would not address the real issues facing young people trying to return to Ireland.

Social Democrat TD Catherine Murphy claimed this proposal would not help lower skilled workers abroad who want to come home.

"You can skirt around the edges for what the real problem is, but the real problem is that the cost of living is one of the biggest disincentives - and one major element of that is housing.

"If you're going to be giving an incentive surely we need carpenters and sparks and labourers and we need to start building houses.

"That would address the issue."