Tax cut likely as Budget €5bn ahead

THE Government will have a war chest of almost €5 billion available for next Wednesday’s Budget, making a cut in the higher tax rate a strong possibility.

Cutting the top rate of 42% by one percentage point would cost the Exchequer just €228 million in a full year, according to estimates by the Revenue Commissioners.

Figures released by Finance Minister Brian Cowen’s department yesterday showed that is now well within his scope.