Call for €300m income tax cut

The Government needs only a €200m budget adjustment to reach the 3% fiscal deficit target agreed with the troika which gives it scope to introduce tax cuts and an increase in investment, according to Ibec Cork.

The Cork division of the employers’ group wants a €300m cut in income taxes; a €100m cut in consumption taxes; and the abolition of the pension levy.

“Increase the entry point to the marginal tax rate from €32,800 to €34,800; reduce the marginal tax rate from 52% to 51%; reform the universal social charge so self-employed and PAYE workers are treated the same; reverse recent alcohol excise increases and drop the unfair pensions levy, as had been promised,” it said in a statement.