According to RTÉ News, the government plans to increase the normal rate tax cut-off point by €2,000 in the budget, reports RTE.
After a request by Minister of Finance Jack Chambers, the modification was approved in principle, and it will increase from the current €42,000 to €44,000.
This implies that individuals will pay income tax at the reduced rate of 20% on amounts up to €44,000, reports RTE.
Last night, the Government party leaders, the Minister of Finance, and the Minister of Public Expenditure discussed the adjustment.
Over the weekend, more discussions about the general structure of the budget are scheduled to take place.
It was revealed last night that the Coalition may lower the Universal Social Charge in Budget 2025 from 4% to 3% for those with earnings between €25,760 and €70,044, reports RTE.
The suggestion is said to have been put out by Minister of Finance Jack Chambers during a two and a half hour meeting with the coalition leaders.
Fianna Fáil prioritised lowering the USC in order to target low- and middle-class taxpayers in the budget’s income tax package, reports RTE.
It comes after then-finance minister Michael McGrath’s 0.5% cut from the previous year.
The maximum tax cut this government would implement would be one percentage point, and it would be a part of a package that also included adjustments to credits and bands, reports RTE.
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