Taoiseach reiterates promise to scrap Universal Social Charge in five years

Cuts were announced to the charge in Budget 2017

Taoiseach reiterates promise to scrap Universal Social Charge in five years

Taoiseach Enda Kenny after a meeting in Government Buildings in Dublin | Image: Rollingnews.ie

The Taoiseach Enda Kenny says he stands by his promise to scrap the Universal Social Charge (USC) within a five year period.

Cuts were announced to the charge in Budget 2017.

The lowest three USC rates were lowered by 0.5% in a move said to be costing €335m.

The 1% and 3% bands dropped to 0.5% and 2.5% respectively. While the highest rate is now 5%, down from 5.5%.

The entry point to the 2.5% rate slightly increased - from €18,668 to €18,772 - to exclude full-time workers on the minimum wage.

Fianna Fáil now believes cuts to the tax may not be able to happen because of public service pay demands and fears over Brexit.

Party leader Micheál Martin says the Government needs to be honest with the people about tax cuts.

But speaking in County Armagh at the North-South Ministerial Council, Mr Kenny was adamant it would be scrapped.