A third income tax rate of 30% is still under consideration ahead of the budget.
The Government hinted at plans for the new tax band ahead of last year’s budget; however, it was not part of the package that was eventually announced.
At the time, then-Tánaiste Leo Varadkar suggested the rate could be levied on people earning between €36,800-€41,800 – putting an extra €500 a year in their pockets.
Speaking at the National Economic Forum this morning, Finance Minister Michael McGrath said the plan is still under consideration.
“We are undertaking a review of the personal taxation code and that involves developing a new roadmap for the future of personal taxation in Ireland,” he said.
30% tax rate still under consideration ahead of budget - Finance Minister.https://t.co/ENNhHjKcSS pic.twitter.com/cCcTzkM4MR
— NewstalkFM (@NewstalkFM) June 12, 2023
“That went out to public consultation and one of the specific questions we posed as part of that consultation relates to the possibility of a third or an intermediate rate.
“So, no policy decision has been made yet as to whether or not we will introduce such a rate and if so, when.
“That will fall to be considered now as part of the budgetary process.”
Several ministers are attending the National Economic Forum today to hear pitches for how to spend the budget surplus.
The event gives lobby groups a chance to outline their demands across sectors including housing, hospitality and social welfare.
Budget 2024 is likely to be announced in October.
