FG criticises plan to backdate income levy increases

Fine Gael has slammed the Government's apparent plan to backdate the budget increase in income levies to the start of the year.

Reports this morning suggest that the increased levy could be applied to lump-sum payments received in the first four months of the year.

Finance Minister Brian Lenihan had said the changes would come into effect on May 1.

However, this morning's reports say it could be backdated to January 1 for lump-sum payments like bonuses or voluntary redundancy payments, as well as for businessmen who were advised to "front-load" their 2009 income in order to avoid the tax increases announced last month.

Fine Gael's Kieran O'Donnell says this is unfair on people who have lost their jobs in recent months.