Rise in threshold for higher income tax rate
Irish government officials are considering tax relief measures for home heating oil in the upcoming Budget, including potential VAT adjustments or carbon tax cuts. Additionally, there is a commitment to raise the income tax threshold to provide relief for middle-income earners over the next four years.
Why it matters
These proposed fiscal policies aim to address cost-of-living pressures and energy affordability for Irish households.
The Tánaiste has strongly suggested that the Government will cut tax on home heating oil in the Budget.
Speaking on RTÉ's Morning Ireland, Simon Harris said that people need clarity on energy prices and that next month's Budget would aim to provide that.
The Government has two options when it comes to reducing the cost of home heating oil.
It can lower the carbon tax on kerosene, something Sinn Féin is expected to introduce legislation on in the Dáil next week.
Alternatively, it could equalise the VAT rate charged on home heating oil, which is currently 13.5%, with the 9% levied on gas.
The latter approach has been proposed by the industry group, Fuels for Ireland.
Mr Harris is also expected to commit today to increasing the threshold at which workers pay the higher rate of income tax in each of the next four budgets.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in