Finance Minister says there are no plans to increase income tax

The Finance Minister said that the income tax will not go up as Covid-19 has caused huge expenditures in the economy.

Minister Paschal Donohoe said the personal tax receipts are excellent in terms of our economy. He added that he has no intention of going to the government with plans to increase income tax.

Donohoe said the program for the government was very clear and it was a testament to the commitment not to increase income tax in the 2021 budget.

“Even at this point I will have to see how the months’ worth of tax collection to form a view regarding the trend that we are seeing at the moment is one that is sustainable across the year and will carry into next year,” he added.

Ministers are eager to bring people back to work rather than being concerned on the Income Tax side.

Donohoe said the 2021 budget will be about bringing back the lakhs of people who lost their jobs during this pandemic and for the unity of all of us.

Decisions on the budget are a matter for the government as a whole, he said, adding that it has worked well for Covid from the beginning.

He said that the income tax receipts in June, July and August brought positive news on the total collection. Donohoe pointed out that the decisions related to the medium plan for public health are very important for the economy.

“But in terms of the impact it’s going to have a budget 2021. I have to say that September is always a very significant month in terms of taxes, and it’s the final piece in the jigsaw before we make a call about what our tax target is going to be (next year),” Donohoe said.

He added, “So, even at this point, I will have to see a month’s worth of tax collection to form a view regarding the trend that we are seeing at the moment, and if it is one that is sustainable.”

The country needs to create a social insurance system as a result of changes in new public health measures and the reopening of schools.

Donohoe pointed out that no finance minister in the world can now specify what the deficit will be or how it will be, and that it will depend on what happens in the case of Covid and how successful the policy measures are.