Minimum wage tax break may cost €725m, says Cowen

KEEPING workers on the minimum wage out of the tax net next year could cost the Government between €500 million and €725 million.

The figures are dependent on the minimum wage increasing in line with average earnings.

With the December budget considered crucial to the Government's re-election chances in 2007, Finance Minister Brian Cowen has already signalled his intention to remove minimum earners from the tax net.