The Finance Minister has confirmed there will be no alterations to personal taxation in the upcoming Budget, reports Breaking News.
Outlined in the Summer Economic Statement is a proposed Budget 2026 package totalling €9.4 billion, which includes €7.9 billion in increased public spending and €1.5 billion allocated for tax measures.
Paschal Donohoe told reporters on Friday that the tax portion is primarily aimed at “jobs and investment”, reports Breaking News.
He said: “The most important thing we can do in preparing a Budget is to put in place the measures that will help keep jobs within our country, keep what we have and get more jobs in the future. And the main priority, and how we will do that from a taxation perspective, will be regard to measures that can enhance the competitiveness of our country and support further investment within our economy as well. The consequence of that is there will not be changes from a personal taxation within the Budget, because I’m going to be prioritising decisions instead with regard to jobs and investment in the future of our company,” reports Breaking News.
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When asked if this ruled out adjustments to income tax bands, Mr Donohoe responded: “I’m indicating that we’ve a tax package overall of €1.5 billion. That is the biggest tax package that I believe is safe to implement within our economy. If we would go beyond €1.5 billion, that runs the risk over time of narrowing our tax base and undermining safety in our public finances and the ability to pay for our public services in the future,” reports Breaking News.
“Many of the different budgets that I’ve done in the past have brought forward indexation, and the cost of doing that is at around €1.2 to €1.3 billion. If I was to move ahead with all of the different measures that I’ve been asked to do, it could give rise to a total tax package overall that I believe would be too big and would pose risk within our economy. And the decision that we are working on at the moment is how we can prioritise further investment within our economy and getting and keeping jobs,” reports Breaking News.
Separately, Public Expenditure Minister Jack Chambers said that no announcement regarding Christmas welfare bonuses will be made before Tuesday but noted such payments had been included in past Budgets.
He stated that the social protection strategy would focus on “targeted measures”, reports Breaking News.
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