No Large Tax Cuts, Says McCreevy
Delivering his budget on Wednesday, Irish Finance Minister, Charlie McCreevy
announced that there will be no substantial tax cuts over the next few years.
'This should be a period of consolidation,' he explained. 'There will not be
a period of tax reductions this year, next year, or the year after.' In his budget speech, Mr McCreevy revealed that there would be minimal changes
to the employee tax credit (formerly PAYE) system, although he did increase
the tax free PAYE allowance to 800 euros in order to lessen the tax burden of
many of the Republic's lowest income workers: 'All that this budget was designed to do regarding income tax was to take 90%
of people on the minimum wage out of the tax net,' the Finance Minister announced. Mr McCreevy also upped the income tax exemption limit for elderly taxpayers,
increased the lower rate of VAT from 12.5% to 13.5%, and closed several tax
'loopholes', including amendments to the temporary non-residence rules which
allow Irish investors to avoid capital gains taxes by selling assets during
a period of short-term non-residence. .
|
|
IMPORTANT NOTICE: TAX-NEWS.COM has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments. All materials on this site copyright TAX-NEWS.COM 1999 to 2007. Contact us for further information.