FG hits out at refusal to end income levy

Saturday, December 12, 2009 - 09:30 AM

Fine Gael has criticised measures in Budget 2010, claiming the Government are bringing the lowest-paid workers into the tax net.

The current system insures that people on the lowest income are protected from PRSI and the health levy because they earn so little.

George Lee says the new measure does not take into account the ability of low-paid workers to pay.

He also said that the Minister for Finance broke a promise to reverse the income levy - by turning it into a new social contribution:

"When this income levy was brought in the Minister made it clear that it was temporary to begin with and it's very clear from the Budget announced on Wednesday that his intention is to roll it in with PRSI and the health levy into a new permanent social contribution," said Lee.

"That changes everything, it means that the money which they're taking out from that levy will becomes a permanent feature of the overall taxation system."