The Government has said this afternoon that they fully intend on phasing out the Universal Social Charge, but they will not raise the price of property tax to cover the shortfall.
The news comes after the Department of Finance issued a number of proposals to cover the shortfall once the tax is completely abolished.
The briefing written last February reportedly outlines ways to increase tax in other areas to make up the lost revenue, with option including adding €1.50 to the price of a pint and €1 to the price of spirits.
Meanwhile Sinn Féin’s Pearse Doherty says hikes on income tax and the cost of petrol and diesel would seriously have to be considered: “The reality here is and what people need to realise is if you get rid of this amount of tax,then it has to be made up somewhere.”
“It is either through other types of indirect taxes, which is what the Department of Finance was proposing or it is a reduction of services which means the crisis in housing, in health, in education will continue to go unresolved.”