Nearly 140,000 to pay income tax for first time

ALMOST 140,000 people will be forced to pay income tax for the first time as a result of changes to the tax system.

Thousands of single people will now have to pay tax at the higher rate of 41% on income of more than €32,800, down from the original cut off point of €36,400.

Finance Minister Brian Lenihan said the current tax system is no longer fit for purpose and by cutting tax credits and bands by 10%, the changes aim to bring more of the country’s workforce into the tax net. This will also mean more people will now pay tax at the higher rate.