Stealth Taxes Said To Cost Irish Families Euros 1,000 Per Year

by Jason Gorringe, Tax-News.com, London

18 March 2003

The average family of four is Euros 1,000 per year worse off as a result of stealth taxes introduced by Finance Minister Charlie McCreevy, according to Labour Party Consumer Affairs Spokeswoman Kathleen Lynch.

Whilst Mr McCreevy claimed that his budget would benefit the average family of four with an income of Euros 40,000 by about Euros 95 per year, the reality is starkly different Lynch said. This is due to a multitude of stealth taxes and price increases, the Consumer Affairs Spokeswoman said at the launch of the Labour Party's cost of living survey.

Increases in stamp duty, gas tax, motor tax, duty on credit cards, a rise in the TV licence, and a 1% hike in VAT had all contributed to the effective cancelling out of any benefits that came about as a result of the budget. Families also faced a Euros 274 college registration fee, and up to Euros 200 in fees for prescription medicines. These were evidence of further stealth taxes according to Lynch.

A Department of Finance spokeswoman responded that the economic climate had dramatically changed in recent times and therefore it was not possible to give any more tax breaks, according to a report from the Irish Examiner.

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